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# PGDM@IAMEE www.iamee.

in

## MEASURES OF SKEWNESS AND

INTERPRETATION

On
01/03/2011

PRESENTED BY
GET PLACED

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O V ER V IEW

## 1. What is meant by Skewness.

2. What are the different types of
Skewness Distributions.
3. Skewness Distributions in graphical
representation.
4. Calculation of Skewness Coefficient
in different (two types) methods.

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## The statistical technique to indicate

the direction and extent of skewness
in the distribution of numerical
values in the data set.

## A frequency distribution of the set of

values that is not
Symmetrical(normal) is called
asymmetrical or skewed.
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Skew ed distributions

## There are three types:

Symmetrical distribution
A.M = Median = Mode

## Positively skewed distribution

A.M > Median > Mode

## Negatively skewed distribution.

A.M < Median < Mode
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## Skew ed distribution Curves

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## For an asymmetrical distribution, the

distance b/w Mean and Mode may be
used to measure the degree of skewness
because the Mean is equal to Mode in a
symmetrical distribution. Thus,

## Absolute, Sk = Mean Mode

= Q3 + Q1 2 Median.
For Skewed distribution, if Mean>Mode, the
Skewness becomes +ive. Otherwise ive.

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## Variation tells us about the amount of

the variation where as Skewness tells

## In business and economic series,

measures of variation have greater
practical application than measures
of skewness.

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Relative m easures of
Skew ness
Karl Pearsons Co-efficient of Skewness,

## The value of SKp various b/w 3.

For moderately skewed distribution,
But moderately skewed distribution, the value of
SKp lies between 1.
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Relative m easures of
Skew ness
Bowleys Coefficient of Skewness,

## Kellys coefficient of Skewness,

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Calculation ofSKp

## 1. Data of rejected items during a

production process is as follows:
No of 21- 26-30 31-35 36- 41-45 46- 51-
rejects(per 25 40 50 55
operator)
No of 5 15 28 42 15 12 3
operators
Calculate the mean, standard
deviation, and coefficient of
skewness and comment on the
results.
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Solution:
Class Mid- Frequenc d=(m- d fd fd
value(m) y(f) A)/h
21-25 23 5 -3 9 -15 45

26-30 28 15 -2 4 -30 60

31-35 33 28 -1 1 -28 28

36-40 38 42 0 0 0 0

41-45 43 15 1 1 15 15

46-50 48 12 2 4 24 48

51-55 53 3 3 9 9 27

## N=120 d=0 fd = -25 fd=223

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## By inspection, mode lies in the class

36-40.

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A nsw ers:

## X = 36.96 rejects / operator.

= 6.736 rejects / operator.
Mode = 37.70
Coefficient of Skewness = -0.109

Interpretation :
Distribution is Negatively Skewed and
hence the concentration of the
rejects/operator is more on the left side.
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## Calculation ofBow ley's

coef ci
fient
2) The data on the profits(in Rs lakhs)
earned by 60 companies is as
follows:
Profits Below 10-20 20-30 30-40 40- 50 and
10 50 above
No. of 5 12 20 16 5 2
companies

## Obtain the limits of profits of the

central 50 percent companies. And
also calculate Bowleys coefficient of
skewness.
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Solution:
Profits (in Rs lakhs) Frequency(f) Cumulative frequency
(c.f)

Below 10 5 5

10-20 12 17

20-30 20 37

30-40 16 53

40-50 5 58

50 and above 2 60

N = 60
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## Q1 = size of (N/4)th observation. And

Q3 = size of (3N/4)th observation.
Therefore Q1 = 15th observation, Q3
= 45th observation.

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## Hence, the profit of central 50 percent

companies lies b/w Rs.35 lakhs and
18.33 lakhs.
Therefore, Coefficient of quartile
deviation,
Q.D = (Q3 Q1) / (Q3 + Q1)
=____________

## Median=size of (N/2)th observation

=(60/2)th observation. Thus, median
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Median,

## The positive value of SKb indicates that

the distribution in positively skewed.
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A nsw ers:

Q1 = 18.33 lakhs
Q3 = 35 lakhs.
Q.D = 0.313
Median (Me) = 26.5
Coefficient of Skewness = 0.02.

Interpretation:
The distribution is positively skewed and
therefore, concentration of larger value on
the right side of the distribution.
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TH E EN D

## MEASURNESS OF SKEWNESS AND

INTERPRETATION

THANK YOU

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to today
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Try it
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The following table gives the distribution of
weekly wages of 500 workers in a factory:

## Weekly Below 200- 250- 300- 350- 400

Wages 200 250 300 350 400 and
(Rs). above
No. of 10 25 145 220 70 30
a) Obtain the
Workers limits of income of the central
50% of the observed workers.
b) Calculate Bowley's coefficient of
skewness.
ANS: Negatively Skewed.(SKb = -0.102).