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Skewness and Its Measures

The document discusses skewness, which measures the asymmetry of a distribution, categorizing it into positive, negative, and zero skewness. It also outlines various measures of skewness, including Pearson's first and second coefficients, Bowley's coefficient, and Kelly's coefficient, each with their respective formulas and interpretations. Examples of skewed data types are provided, illustrating the practical application of these concepts.

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0% found this document useful (0 votes)
17 views10 pages

Skewness and Its Measures

The document discusses skewness, which measures the asymmetry of a distribution, categorizing it into positive, negative, and zero skewness. It also outlines various measures of skewness, including Pearson's first and second coefficients, Bowley's coefficient, and Kelly's coefficient, each with their respective formulas and interpretations. Examples of skewed data types are provided, illustrating the practical application of these concepts.

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devjain1303
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Skewness And Its

Measures
BY- DEEPANSHU, CHANDAN, DEV, AYUSH
GUPTA, HARSH SINGH, VAIBHAV
Table of Contents
• What is Skewness
• Measures of Skewness
What is skewness ?
• Skewness is a measure of the asymmetry of a distribution. A
distribution is said to be skewed if it is not symmetrical. A
distribution can have right (or positive), left (or negative), or
zero skewness. A right-skewed distribution is longer on the right
side of its peak, and a left-skewed distribution is longer on the
left side of its peak.
Positive Skewness
Positive skewness occurs when the tail of the distribution
extends towards the right. In a positively skewed
distribution, the mean is greater than the
median.
Examples of positively skewed data include income
distribution and stock returns.
 Negative skewness
Negative skewness occurs when the tail of the distribution extends
towards the left. In a negatively skewed distribution, the
mean is less than the median.
Examples
of negatively skewed data include age distribution and
exam scores.
Zero skewness
When a distribution has zero skew, it is symmetrical. Its left and
right sides are mirror images. Normal distributions have
zero skew, but they’re not the only distributions
with zero skew. Any symmetric distribution , such as a
uniform distribution or some bimodal (two peak)
distribution , will also have zero skew .

Measures of Skewness
Pearson’s first coefficient of skewness = Compares
the Mode and mean of a distribution
• Pearson’s second coefficient of skewness =
Compares the median and mean of a distribution
• Bowley’s coefficient of skewness = Compares the
difference between the quartiles of a distribution
• Kelly’s Coefficient of skewness = Compares the tails of
a distribution to assess its asymmetry
1. Pearson’s first coefficient of skewness
Pearson’s first coefficient of skewness , also known as the mode skewness, is a measure of
skewness that compares the mode and mean of a distribution . It provides an indication of
the direction and magnitude of a distribution’s asymmetry.
} Skewness = (Mean-Mode)/Sample standard deviation

Karl Pearson Coefficient of skewness for ungrouped data


Let Xi , I = 1,2,…n be n observation
Formula :-
Skp​= 3(Mean–Median)/ Sd​

Karl Pearson Coefficient of skewness for grouped data


Let (Xi,fi) i = 1,2,…,n be given frequency distribution
Formula :-
​ Skp = (Mean–Median)/ Sd
2. Pearson’s second coefficient of
skewness
Persons’s second coefficient of skewness is another measure of skewness . It is also
known as Person Median skewness . If the coefficient is positive the distribution is right
skewed .If it is negative the distribution is left skewed . If it is zero the distribution is
symmetric

Formula :-
(Mean–Mode)/ Sd​ OR (Xˉ−M)/ Sd

Where :
Xˉ= Mean
M= Mode
Sd= Standard Deviation
3. Bowley’s coefficient of skewness

Bowley Bowley’s coefficient of skewness is a measure of the degree and direction of


skewness in a given data set. It is also known as quartile skewness coefficient or Bowley’s
skewness coefficient’s coefficient of skewness is a measure of the degree and direction of
skewness in a given data set. It is also known as quartile skewness coefficient or Bowley’s
skewness coefficient . Bowley’s coefficient of skewness lies between -1 and +1. If the
coefficient is zero, the distribution is symmetric. If it is positive the distribution is right
skewed and if it is negative the distribution is left skewed
Formula :-
Q3 + Q1 – 2median/Q3-Q1
Where :
Q1 : the first quartile
Q3 : the third quartile
4. Kelly’s coefficient of
skewness
Kelly's coefficient of skewness is based on deciles or percentiles of the data.
For a symmetric distribution , the first decile namely D1 and nineth decile D9 are
equidistance from the median i.e. D5 . Thus , D9-D5=D5-D1
Formula :-
Sk= D9+D1-2Median/D9-D1
OR
Sk=P90+P10-2Median/P90-P10
Where:
D1(=P10) is the first decile (or tenth percentile) of the data
Median =D5(=P50) is the median of the data
D9 (=P90) is the nineth decile (nineteenth percentile) of the data
Interpretation :-
If Sk < 0, the data is negative skewed
If Sk = 0, the data is symmetric(i.e.,not skewed)
If Sk > 0 , the data is positively skewed
THANK YOU

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