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Unit 8: Skewness and Kurtosis: Karl Pearson, Bowley, Kelly's Methods



                                γ
            For a normal distribution  2  = 0. If  γ  is positive, the curve is leptokurtic and if  γ  is negative, the  Notes
                                         2
                                                                             2
            curve is platykurtic.
            Example 7:  The first four central moments of a distribution are 0, 2.5, 0.7 and 18.75. Test the
                        skewness and kurtosis of the distribution.
            Solution:
                        Testing Skewness
                        We are given       μ 1  = 0,  μ = 2.5,  μ  = 0.7 and  μ  = 18.75
                                                   2
                                                          3
                                                                     4
                        Skewness is measured by the coefficient  β 1
                                                μ 2
                                           β 1  =   μ 3 2 3


                        Here               μ 2  = 2.5,  μ  = 0.7
                                                    3
                                                (  )0.7  2
                        Substituting the values,  β  =    = + 0.031
                                            1
                                                (  )2.5  3
                        Since  β  = + 0.031, the distribution is slightly skewed.
                              1
                        Testing Kurtosis:
                        For testing kurtosis we compute the value of  β . When a distribution is normal or
                                                              2
                        symmetrical,  β  = 3. When a distribution is more peaked than the normal,  β  is
                                    2
                                                                                        2
                        more than 3 and when it is less peaked than the normal,  β  is less than 3.
                                                                      2
                                                 μ
                                           β 2  =   μ 2 4 2


                                           μ 4  = 18.75,  μ  = 2.5
                                                      2
                                                18.75   18.75
                        ∴                  β 2 =  (  )2.5  2   =   6.25   = 3

                        Since  β  is exactly three, the distribution is mesokurtic.
                              2
            Self-Assessment

            1. Fill in the blanks:
               (i) If Q  = 30, Q  = 20, Med = 25, Coeff. of Sk. shall be ............
                     3      1
               (ii) If   X   = 50, Mode = 48, σ  = 20, the Coefficient of Skewness shall be ............
              (iii) If Coeff. of Sk. = 0.8, Median = 35, σ  = 12, the mean shall be ............
              (iv) In a symmetrical distribution the coefficient of skewness is ............
               (v) The limits for Bowley’s coefficient of skewness are ............

            8.4 Summary

            •   The nature of distribution is further studied deeply by calculating ‘Moments’ which reveals
                whether the symmetrical curve is normal, more flat than normal or more peaked than normal.




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