lOMoARcPSD|29110461

Skewness - practice materials

BCom (Honours) (Christ (Deemed To Be University))

Studocu is not sponsored or endorsed by any college or university

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)
 lOMoARcPSD|29110461

PART-II

3 MEASURES OF
UNIT SKEWNESS
SYLLABUS
Meaning of Skewnesss - Symmetrical and Skewed Distribution - Measures of
Skewness Absolute and Relative Measures of Skewness Karl Pearson's
Coefticient of Skewness and Bowley's Coefficient of Ske

The measures of dispersion, measures the spread or scatter or variation of the variables
from acentralvalue-Mean. Median or mode. They do not explain the real characteristics of the
distribution. Therefore, to measure the real characteristics of the distribution, Skewness of the
data is calculated.

Bel-Shaped Curve

Asymmetrical Curve
Mo

No Skewness Negative Skew

Positive Skew
X= Me z Xe Me<2 X> Me»Z

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

MEASURES OF SKEWNESS
Skewness
179
lack of
means
asymmetrical, it is called skewedsymmetry (balance
distribution. or equal spread). If a distribution is

In symmetrical distribution Mean, Median and Mode are

a

distribution forms a bell-shaped curve when the values are equal. The symmetrical
When the value of Mean is more
plotted on a graph sheet.
than the
Positive Skewness. When the value of Mode is valuethan of Mode (When X>Z), it is called
Negative Skewness. greater Mean (when X>ZI, it is called

Definitions
Garret defined "A distribution is said to be 'skewed' when the
mean and the median fall at
different points in the distribution, and the balanace center of
(or gravity) is shifted to one side or
the other-to left or right."
According to Croxton and Cowden "When a series is not symmetrical, it is said to be
asymmetrical or skewed".
Morris Hamburg defined, "Skewness refers to the
shape of a frequency distribution."
or lack of asymmetry symmetry in the

Tests of Skewness
To ascertain the presence
of skewness in a distribution, the following tests may be applied.
Skewness is said to be present if:
(i) The values of mean, median and mode are different;
(i) When plotted on a graph, the frequency distribution do form
Curve;
not a bell-shaped
(ti) The sum of the positive deviations from the median is not equal to the sum of the
negative deviations from the median;
(iv) Quartles Q and Q3, are not equi-distant from the median.
Skewness is absent when the above conditions are not satisfied.
Difference between Dispersion and Skewness:
(1) Dispersion or variation is concerned with the amount of variation rather than with
the direction. Skewness tells about the direction of the variation.
Measures of
skewness depends upon the amount of dispersion.
(2) Dispersion is widely used statistical tool in decision-making, whereas, skewness is
used rarely.
Measures of Skewness
(i) Absolute Measures of Skewness : Skewness can be measured in absolute terms
taking the difference between Mean and Mode. That means,
by
Absolute Skewness = X-Mode
When skewness is based on quartiles, absolute measure of skewness is calculated
by usingthe formula:
Absolute Skewness Q3+Q1-2 Median.
Ifthe answer is positive, it means that there exists positive skewness (X>Z) and if
the answer is negative, there exists negative skewness X < Z).

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

QUANTITATIVE METHODS FOR BUSINESSs-

180
relative measures
ofskewness are
(in Relative Measures of Skewness: Important
1. Karl Pearson's
Coefficient
of Skewness;
2. Bowley's Coefficient of Skewness;
3. Kelly's Coefficient of Skewness:
Moments.
4. Measures of Skewness based on
Karl Pearson's Skewness and Bowley's Skewness are discussed
As per syllabus, only
herel

cOEFFICIENT OF SKEWNESS
KARL PEARSON'S
or simply Pearsonian
coefficient of skewness (Sk.)
Karl Pearson's coefficient of skewness
mean and mode. This
difference is divided by Standard
is based on the difference between
Deviation to relative measre. That is :
get or 3m-Mu
Skp
Mean- Mode X-2
Standard
empiricalDeila, Mean]
MLA 3Mat
In the absence of mode, the [Modesoskewness is
formula, [Mode = 3 Median -2
calculated
3M-2f
using the
is used instead. In such a case, Pearson's coefficient of
formula:
3 m u

3 (Mean- Mode) 3 (X- Me)

Skp Standard Deviation
The results of Skp, normally, would lie between 1. Theoretically, the value ofSk, varies
between 3.
Example 1. From the following data calcualte Kari Pearson's Coefticient ofSkewness.

40, 36, 42, 53, 45, 50, 68, 61, 55

Solution.

skp X-z
Calculation of Mean and Standard Deviation

(X-X)
40 -10 100
36 -14 196
42 -8 64
53
45 25
50 0
68 18 324
61 11 121
55 5 25
EX=450 2x864

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

MEASURES OF SKEWNESS
181
450
= 50
9

864
N 9 = 9.798

As mode cannot be calculated, we have to use the formula

Sk, 3(X Me)
Skp
Calculation of Median:
Arrange the data in ascending order:
36, 40, 42, 45, 50, 53, 55, 61, 68

Median Size of item Size of i item

5th item
Median 50

Sk
3(X Me)

Sk, 3(50-50) = 0
9.798
Thus, there is no skewness in the distribution.
Example 2. The wages paid to 550 workers per day in a manufacturing unit is as follows.

Wages (Rs.) 100 200 300 400 500 600 700 800 900
No. of Workers 35 40 48 100125 87 43 22 50
Calculate Karl Pearson's coefficient of skewness.
Solution.

Sk, =
Calculation of Mean and Standard Deviation

(x-500
100
100 35 4 140 560
200 40 9 120 360
300 48 96 192
400 100 100 100
500 125 10 0 0
600 87 87 87
700 86 172
800 22 9 66 198
900 50 16 200 800
N=550 fd' =- 17| Efd2=2469

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

QUANTITATIVE METHODS FOR BUSINESS

182
-

=A+ N xi
500+ x 100=496.91

-3
N
xi

2469 x100
550 550)
= V4.489-0.00095 x 100 =
4.48805 x 100

2.1185 x 100=211.85
Since the maximum frequency is 125, Mode
=
550- 500
Skp - z

496.91-500-0.01458
21 185
Example 3. Calculate Karl Pearson's Coefficient of skewmess.
No. of Children 0 1 2 3 5 6

No. of Families 10 16 25 18 11 8

Solution. Skp
Calculation of Mean and Standard Deviation

d
0 3 9 21 63
1 10 -2 4 20 40
2 16 16 16
25 0
18 18 18
11 2 4 22 44
6 8 3 24 72
N 95 2fd=7 2fa=253
X =A+ N
=3+ 95 =3.0737

fd
N N
=
2.663-000543 =
/2.65757
= 1.6302

The highest frequency is 25,

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

MEASURES OF SKEWNESS
183
Mode =3.

Sk,X-Z 3.0737-3-0.04519
L.6302
Example 4. Calculate mean wage and Karl Pearson's
following: coefficient of skewness from the
25 men get the rate of
32 men get the rate of 50 per hour
40 men get the rate of 55 per hour
75 men get the rate of 60 per hour
102 men get the rate of 65 per hour
70 per hour
60 men get the rate of
26 men
75 per hour
get the rate of 80 per hour
Solution. Take wages per hour as X and
number of men as frequency
Calculation of Mean and Standard Deviation
X
fd
(X-70)
50 25 - 20
400 500 10000
55 32 - 15
225 480 7200
60 40 - 10
100 -400 4000
65 75 25 -375 1875
70 102 0 0 0
75 60 5 25 300 1500
80 26 10 100 260 2600
N=360
fd-1195 f-27175

A+ 70+
N =66.68
360

-2fdEfd 27175(-1195
N 360 360
=75.4861-11.0187 = 64.4674 =8.0292
The highest frequency is 102,
..
Mode = 70

Sk, Z6.68-70
8.0292
-0.4134
Example 5. Calculate Karl Pearson's coefficient of skewness from the
following table.
| Lifetime (in hours) 300-400 400-500 500-600
No. of bulbs
600-700 |700-800 800-900 900-1000
25
56 60
75 48
30 15
Solution.

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

300-4000 350
100

3
400-500 450
9 25 -75
2 225
500-600 550
4 56 - 112
1 224
600-700 fo> 60 - 60
650 0 60
700-800 750
A775 0
0
800-900 850
f 48 48
2 48
900-1000 950
30 60
3 9 120
15 45
135
N-309 2fd'=-94 fd2=812|

=A+ N xi650+| 309 X100=619.58

N N 812
Xi = 309 309 x 100

=
2.6278-0.09254 x 100
=
25353x 100 1.5923 x 100
= 159.23
Since, highest frequency is 75; modal class is 600-700
Mode L+|2f-fo- $2

600+ 75-60
x 100
2(75)- 60-48
600+x100 600+35.714
Mode = 635.714

Sk
Skp -Z 61958-635.714
159.23
Sk =-0.1013
Example 6. Find Pearson's coefficient of
skewness from the
following data:
Wages (Rs.) 270-280 280-290 290-300 300-310 310-320 320-330 330-340 340-350
No. of Workers 12 18 35 42 50 45 20 8
Solution.

Skp -2

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

Calculation of Mean and

m Standard Deviation
d 185

270-280
(mid-polnt) -305)
d'2

I00 d fd'2
275
280-290 285
-3
290-300 295
-2 12 - 36
4
300-310 1 18 108
305 1 36
310-320 0 35 72
315 0 35
So 42 35
320-330 325 0
330-340 50 50
0
335 Sa45 50
340-350 3
9 90
345 20 180
16 60
180
32
128
N-230 2fd'=125
X A+xi305+610 | Zfd2=753

310.4348

NN 2fd(fdiXi 23020X10
= x10 230 230 X10
=

3.2739-029537
= 1.72584x 10
x 10 =
J297853 x 10
o =17.2584
Since, highest
frequency is 50; mode lies in 310-320
class.
Mode L

xi= 310+ (2 (50)-42-4510|

50-42
X10
310+

310+6.154
Mode 316.154

SkX-2 310.4348-316.154
172584
Sk =-0.3314
Example 7. Find Pearson's coeficient of
skewness from the
90-100 100-110 110-120 following data:
|120-130 130-140 140-150 150-160
f 4
2221 19 10 3|160-170170-180
2 18
Solution. 1

skp

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

J0-100 T0
95
100-110 105
-4 16
-16
110-120 115
-3 9 2
64
-6 4
120-130 125
-2 4 18
18
6
-36
130-140 135 1 22
72
24
-22
140-150 145
0 0 21 0
22
46
150-160 155
1 1 19 19
0
67
160-170 165
2 4 10
19
86
20
170-180 175
3 9 3 9
40
96
4 16 27
1 4 99
16
N=100 2fd'=-28fd'2=278| 100
X
=A+ xi=135 + 100 x1o=135-2.8 =132.2
fa2 (fa' xi = 278 282
N N x 10
100 100

o
2.780.0784 x 10 /2.7016 x10
= 16.436
= =
1.6436 x 10
As,
table andfrequencies are concentrating around 110- 150, it is
analysis table. necessary to prepare grouping
Grouping Table
X Col.
Frequencies
Col.I Col.II Col.IV
90-100 4 Col. V Col.V

100-110 2
24
110-120 20
18
42
120-130
40
22
130-140 43 61)
21
62
40
140-1500 19
50
29
150-160 10
32
13
160-170 3
14

170-180 1

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

90-100 100-110 Analysis Table 187

Col.1 110-120 120-130 130-140 140-150
Col. Il 150-160 160-170
Col. II 170-180
Col. IV
Col. v
Col. VI
Total
We are 2
getting two highest
5
5
Hence, apply tallies in
empirical formula Mode
the
analysis table. The series is
Calculation of Median
-

3
Median 2 Mean. bimodal in nature.

Median =
size of Nth
2 item= size of 100th
2
item
= 50th item
Therefore, Median lies in 130 -

140 class
N
Exact Median =L+ C.f.
x i

50-46
= 130 +1x10130+
21
Median =131.904
Sk 3X-Med) 3(1322-131904)
16.436
Skp 0.054
Example 8. Calculate Karl Pearson's
coefficient of skewness from the
Weekly Wages (Rs.) No. of Workers
following data.
100 and Above
50
200 and Above
46
300 and Above
36
400 and Above
18
500 and Above
6
600 and Above
3
700 and Above
Solution. Convert open-end classes into
normal classes and then solve
skp X-2

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

QUANTITATIVE METHODS FOR BUSINEseSS-I

188
fd fd'2
d'2
m
(m-450)
(mid-point) 100 -12
9
4 36
100-200 150 -3
-220 40
4 fo10
200-300 250 -2
18
300-400 350 -1 1 18 18
0 Sa12 0
400-500 450 0
3 3 3
500-600 550 1
2 8
600-700 650 2
1 3 9
700-800 750 3 9
N-50 fd'=-40 fd=114

=A xi-450+x100
370

Efd Xi= 14- x 100

NN
= 228X0.64 x 100 = VL64 x 100
= 1.2806 x 100

a = 128.06

Since, highest frequency is 18; mode lies in 300-400 class.

f-foxi
ModeL* 2f-fo-f2
18-10
300+ -x 100
2 2 (18)-10-12

300+x100=300+57.143
Mode =357.143
Sk X-Z 370-357-143
skp 128.06
Skp =0.10039
Example 9. Compute Karl Pearson's coefficient of skewness from the follwoing data:
Variable21-23 24-26 27-29 30-32 33-35 36-38
Frequency 17 193 399 194 27 10
Solution. Here, variable are given in inclusive form. Convert them into
exclusive form
and then compute Mean, Mode and Standard Deviation.

Skp X-Z

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

MEASURES OF SKEWNESS 189

Calculation of Mean and Standard Deviation

d d'2 fd fd2

(mld-point)
(m-28)
3
20.5-23.5 22 -2 4 17 -34 68
23.5-26.5 25 -1 So 193 -193 193
26.5-29.5 28 0 A399 0
29.5-32.5 31 1 S2 194 194 194
32.5-35.5 34 2 4 27 54 108
35.5-38.5 37 3 10 30 90

N=840 fd=51fd-653
=A -28 840
28.18
2 (fdxi 653 (51
NN) =40 840
x3

= 0.7774-0.0037 x 3 = 0.7737 x 3 =0.8796 x 3

2.63888
Since, highest frequency is 399; mode lies in 26.5-29.5 class.
Mode L+ -xi= 265+ 399-193 x3
2f1-fo-f2 2 (399)-193-194
=265 +x3=26.5+1.5
Mode = 28

Sk 2 2818-28
2.6388
Skp =0.0682
Example 10. Consider the following data:

Distribution A Distribution B
Mean 100 90
Median 90 80
Standard Deviation 10 10
State whether the following statements are true or
false.
() Distribution A has the same degree of the variation as
Distribution B.
(i) Both distributions have the same
degree skewness.
of
Solution. ( Coefficient of
variation =
x100

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

QUANTITATIVE METHODS FOR BUSINESS

190

10
x 100 ==10%
Distribution A: 100
10
Distribution B: 100 11.11%
X
O0
=

A. Therefore, Distribution Bi.

is
is greater than C.V.
of Distribution
.V. of Distribution B
more variable than Disturibution A.
3X- Me)
(i) Skp
3 (100-90)
Distribution A: 3
10
3(90-80)
3
Distribution B: 10
Both the distributions have the same degree of skewmess.
500 and the of their squares is
sum 6000.
Example 11. The sum of 50 observations is
cdlan is 12. Compute the coefficient of variation and the coefficient ofskewness.

Solution. Given. N 5 0 : X = 500 X = 6000: Me =12.

500
= 10
S0
6000 500
N 50
=120 100 V20 =

o 4.472

CV. =x 100 =4 472100

10
=44.72%

Sk _3(X Me) 3 (10-12)-

-16-1.3416
4.472
4.472
Example 12. In a certain distribution Mean =
45; Median =48; Sk, =
-0.4. Find S.D.
3 (X Me)
Solution. skp
3 (45-48)
0.4
-9
22.5
-0.4
Example 13. Calculate coefficient of skewness
Mean 59.5;Variance = 110; Median = 55.7.

Solution. skp
3X Me)
a = Variance = V10 =10.4881
3(59.5-55.7)
Skp 10.488

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)

 lOMoARcPSD|29110461

191
MEASURES OF SKEWNESS

114
Sk
104881
= I.0869

Example 14. Given C.V. =30%: Mean 25: Mode = 16. Find Sk.

Solution. CV X100

30 =x 100
5
25x 30
7.3
100
3(X Me) 3(25- 161
Skp = l.2

Example 15. In a moderately skewed frequency distribution the mean is 20 and the
Coefficient of skewness
median is l8.5. If the coefficient of variation is 30%, ind the Pearsonian
of the distribution.

Solution. Given X 20:Median = 18.5:C.V. = 30%

3X-Me
Sk
C.V. =x 100

30 1

a 6

320-185
Skp 0.

Example 16.The following information was obtained from the records of a factory relating
to wages

Arithmetic Mean Rs. 560

Median Rs. 565
Standard Deviation 25.76
Calculate the coefficient of Variation and Skewness.
Solution.
Given X 560 Median 565;0 =25.76
CV x100 = 2576 x LO0 = 4.6%
560
3X-Me
Skp
3(565-560)
Sk 25.76
0.5823

Downloaded by FIROZA MIRZA (firozamirza.stwc@gmail.com)