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4 MOMENTS, SKEWNESS & KURTOSIS

MOMENTS
In mechanics, the term moment is used to denote the rotating effect of a force. In Statistics, it is used to
indicate peculiarities of a frequency distribution. The utility of moments lies in the sense that they indicate
different aspects of a given distribution. Thus, by using moments, we can measure the central tendency of a
series, dispersion or variability, skewness and the peakedness of the curve.

Central Moments
The moments about the actual arithmetic mean are called Central Moments. They denoted by .
The first four moments about mean or central moments are as follows:
( X - X )
r

mr =
For ungrouped data: N ; r = 1, 2, 3, 4.
f ( X - X )
r

mr =
For grouped data: f ; r = 1, 2, 3, 4.

Remarks
1. The first central moment is zero, that is, 1 = 0.
2. The second central moment is 2 = 2, indicating the variance.
3. The third central moment 3 is used to measure skewness or symmetry.
4. The fourth central moment 4 gives an idea about the Kurtosis or peakedness.

Raw Moments
The moments about an arbitrary point i.e. assumed mean, are called Raw Moments. They are denoted by m .

The first four raw moments are as follows:
( X - A )
r

m r=
For ungrouped data: N ; r = 1, 2, 3, 4.
f ( X - A )
r

mr=
For grouped data: f ; r = 1, 2, 3, 4.
Remarks
The first raw moment m1 = X - A

Moments about Origin


In the raw moments if we take A = 0, we get moments about the origin. The moments about the origin are
denoted by n .
The first four moments about origin are:
mr=
Xr
For ungrouped data: N ; r = 1, 2, 3, 4.

mr=
f Xr
For grouped data: f ; r = 1, 2, 3, 4.
Remarks
The first moment about origin is always equal to mean.

Sheppards Correction for Grouping Errors in Moments


When moments are calculated for a continuous frequency distribution, it is assumed that all the values of a
variable are concentrated at the mid-point of that interval. This assumption is true for symmetric distribution
and moderately skewed distribution when class intervals are not greater than 1/20 th of the range of the
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distribution. Thus, for most of the distribution obtained from actual data this assumption is invalid and it leads
to grouping error. The grouping error in moments can be corrected by applying Sheppards corrections as
follows:
h2
m2 (corrected) = m2 (uncorrected) -
12
h2 7 4
m4 (corrected) = m 4 (uncorrected) - m 2 (uncorrected) + h
2 240
Here h is the width of the class interval.
The first and third moments need no correction.
The moments before correction are called Crude Moments and those after correction are called Adjusted or
Corrected Moments.

SKEWNESS
Skewness refers to lack of symmetry. The distribution is said to be skewed when the frequency curve of the
distribution is not symmetrical. If the frequency curve has a longer tail to the right of the central maximum
than to the left, the distribution is said to be skewed to the right or positively skewed. On the other hand, if the
frequency curve has a longer tail to the left of the central maximum than to the right, the distribution is said to
be skewed to the left or negatively skewed.

When a distribution is skewed:


i. The frequency curve is not a bell shaped curve.
ii. Mean Meadian Mode
iii. Q3 Median Median Q1
iii. The sum of positive deviations from Median Sum of negative deviations from Median
iv. The frequencies are not equally distributed about the Mode.

Measures of Skewness
Measures of skewness give the direction and the extent of skewness.

Absolute Measures of Skewness


1. Skewness = Mean Mode or Skewness = Mean Median
When Mean > Mode or Mean > Median, there is positive skewness.
When Mean < Mode or Mean < Median, there is negative skewness.
When Mean = Mode = Median, there is no skewness.

2. Skewness = Q3 + Q1 2 Median
When Q3 + Q1 > 2Median, there is positive skewness.
When Q3 + Q1 < 2Median, there is negative skewness.
When Q3 + Q1 = 2Median, there is no skewness.
Moments, Skewness & Kurtosis 31

Relative Measures of Skewness


1. Karl Pearsons Coefficient of Skewness
Mean - Mode 3 ( Mean - Median )
SkP = Standard Deviation or SkP = Standard Deviation
Theoretically, Karl Pearsons coefficient of Skewness varies between 3, but in practice it rarely exceeds
1.

2. Bowleys coefficient of Skewness


Q3 + Q1 - 2Median
Sk = Q3 - Q1
B
The value of Bowleys coefficient of skewness varies between 1.
This measure is useful in case of open-ended distributions.
This measure is based on only middle 50% of the data and ignores the remaining 50% data.
The values obtained by Bowleys and Pearsons methods are neither comparable nor do they bear any
relationship to one another.

3. Kellys coefficient of Skewness


P90 + P10 - 2Median D9 + D1 - 2Median
Sk = P90 - P10 = D9 - D1
K
4. Pearsons 1-coefficient of Skewness (Moment coefficient of skewness)
m2
b1 = 33
m2
For a symmetrical distribution, 1 = 0. The greater the value of 1, the more skewed is the distribution.
But 1 as a measure of skewness has a drawback that it does not tell the direction of skewness.
5. Pearsons 1-coefficient of skewness
m
g 1 = b1 = 3
m 23
For a symmetric distribution 1 = 0. If 1 is positive, the skewness is positive and is 1 is negative, the
skewness is negative.

KURTOSIS
Kurtosis tells us about the degree of peakedness of the frequency curve of the distribution. It can be referred to
as the degree of peakedness, taken relative to a normal curve.
The normal curve which is not very peaked nor flat topped is called Mesokurtic.
If the distribution has a relatively high peak, it is called Leptokurtic.
If the distribution has a relatively flat-topped frequency curve, it is called Platykurtic.

Measures of Kurtosis
1. Pearsons 2-coefficient of kurtosis
m4
b2 =
m22
For a normal curve 2 = 3, for leptokurtic curve 2 > 3 and for platykurtic curve 2 < 3.
2. Pearsons 2-coefficient of kurtosis
g 2 = b2 - 3
For a normal curve 2 = 0, for leptokurtic curve 2 > 0 and for platykurtic curve 2 < 0.

Relationship between Dispersion, Skewness and Kurtosis


Dispersion studies the extent to which a numerical data spreads about an average. It does not tell the extent to
which the items cluster below or above an average.
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Skewness shows the cluster of values above or below an average. In a normal distribution, the data is equally
clustered above and below an average while in an asymmetrical distribution they are not equally clustered.
Kurtosis measures the degree of concentration of the items around the central part of the series.

Exercise
Tick the correct option.

1. If difference between two quartiles is 8, sum of two quartiles is 22 and median is 10.5, the coefficient of
skewness is:
A 0.5 B 0.5 C 0.125 D 0.125

2. In a positively skewed distribution, the percentage of observations that fall below the median is:
A About 50% B Less than 50% C More than 50% D Impossible to determine

3. Mark the wrong statement.


A. When the lower quartile is located at a smaller distance from median than the upper quartile is from it,
the distribution has negative skewness.
B. For a positively skewed distribution, Q3 + Q1 2 Median.
C. A right tailed distribution is a positively skewed distribution.
D. A negatively skewed distribution has longer tail to the left.

4. Which of these is not true about normal distribution?


A. The mean, median and the mode are identical.
B. The mean deviation is nearly 4/5th of the standard deviation.
C. It may or may not be moderately skewed.
D. It is mesokurtic.

5. If a curve is more peaked than the normal curve, it is called:


A Mesokurtic B Leptokurtic C Platykurtic D Asymetric

6. In a certain distribution, the following results were obtained: Mean = 45, Median = 48 and coefficient of
skewness = 0.4. The standard deviation of the distribution will be:
A 22.5 B 7.5 C 9 D 30

7. If a curve is more peaked than the normal curve, it is called:


A Mesokurtic B Leptokurtic C Platykurtic D Asymmetric

8. In a frequency distribution, the value of mean is greater than the mode, the distribution would be:
A Positively skewed B Negatively skewed C Symmetrical D None of these

9. Which of the following is a measure of skewness?


A First moment about mean B Second moment about mean
C Third moment about mean D Fourth moment about mean

10. The first moment about mean is always:


A Positive B Negative C Zero D 1

11. For a normal curve the value of 2 is


A Positive B Negative C 0 D 3
12. Sheppards correction is not required for:
A First and second moments B Second and third moments
C First and third moments D Second and fourth moments
Moments, Skewness & Kurtosis 33

13. The distribution is considered Leptokurtic if:


A 2 = 3 B 2 < 3 C 2 > 3 D 2 > 0

14. The first moment about origin represents:


A Mean B Standard deviation C Variance D None of these

15. Which of these is a measure of symmetry or asymmetry?


A Moments B Skewness C Kurtosis D None of these

Previous Years Questions


Tick the correct option.

1. A set of data can be distinguished from other set of data by means of :


A Central value and dispersion
B Central value, dispersion and skewness
C Central value, dispersion, skewness and Kurtosis
D None of the above [Dec 2015 II]

2. Which one of the following is a false description ?


A In a moderately asymmetrical distribution, the empirical relationship between Mean, Mode and
Median suggested by Karl Pearson is Mean Mode = 3 (Mean Median)
B Coefficient of variation is an absolute measure of dispersion.
C Measure of skewness indicates the direction and extent of skewness in the distribution of numerical
values in the data set.
C Kurtosis refers to the degree of flatness or peakedness in the region around the mode of a frequency
curve. [July 2016 II]
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