RerAIV DCauo (Chapter 4)
Measures OI Snape and
Measures of Shape and Relative Location
A4. MEASURES OF SHAPE
The principal measures of distribution shape used in-
statistics are skewness and kurtosis
Measures of Shape
Skewness Moments
Kurtosis
4.1.1. Skewness
The estimate of representativé value of a series is
provided by measures of central tendency while
measures of dispersion provide an indication of the
extent to which the values of the given series are
scattered from the mean value. Measure of skewness is
a measure that gives the direction and extent of
symmetry or asymmetry in a series and permits us to
compare the two (or more) series. In other words,
skewness tells the shape of a distribution.
X = Med= Mode
X Med
Med
Symmetrical Distribution Positively Skewed Distribution
Figure 4.1
) Symmetrical Distribution: It is clear from the given
igure that the values of mean, median and mode are
equal in a 'symmetric distribution'. Equal number of
ltems is spread on both sides of the mid-point of the
CUrve.
lia distribution of a random variable is not symmetric
then it is referred as skewed distribution and this type
of distribution could either be positively skewed or
negatively skewed.
4) Positively Skewed Distribution: It is clear from the
8iven figure that the value of mean is maximum and
he value of mode is minimum in a positively skewed
distribuion Median lies in between the mean and
mode.
Chapter 4
Thus:- "Lack of asymmetry or symmetr÷ of a given
distribution of a random variable is called skewness". The
idea about the shape of the curve which can be drawn with
the help of the given data is provided by skewness.
A distributionis said to be skewed if:
1) The values of mean, median and mode are not equal,
ie., Mean # Median # Mode.
2) Quartiles are not equi-distant from median, and
3) The curve which is drawn with the help of the given
data is not symmetrical and stretched more to one side
in comparison to other side.
According to Croxton and Cowden, "When a series is
not symmetrical it is said to be asymmetrical or skewed."
According to Morris Hambur, "Skewness refers to the
asymmetry or lack of symmetry in the shape of a
frequency distribution".
The concept of skewness will be clear with the help of
following three figures (igure 4.1), showing
symmetrical distribution, a positively skewed distribution
and a negatively skewed distribution:
X
MÍ
Negatively Skewed Distribution
3) Negatively Skewed Distribution: The value of mode
is maximum and the value of mnean is minimum in
case of negatively skewed distribution. Median lies in
between the mean and mode.
It should be noted that in
moderately symmetrical
distributions, the interval between the mean
and the
median is approximately one-third of the interval between
the mean and the mode. It is the
provides ameans of measuring the degreerelationship which
of skewness.
4,1.1.1. Objectives of Skewness
1) Measures of skewness tell about the degree
Concentration. of
 Statistics al
Semester (Business
MBA First

58 (Unit-I)
facility to
compare twO or
by
more frequency
two methods: distributions.
the basis of the We can find the
skewness
Moderately skewed distribution is mode. The
mean, median and
2) Measure of Skewness
empirical relations of tells about the extent to which
measure of skewness
holds true.
the empirical relationship about the normality of the
Karl Pearson's
Coefficient of Skewness Bowley'sCoefficient of
3) Skewness helps to know such as error Skewness
distribution.Various statistical measures assumption
are based on the Pearson's Coefficient
of mean, sampling error 4.1.1:5. Karl of
of a normal distribution. nature
gives an idea about the Skewness
4) Measures of skewness value. Measure, Sk = Mean -
Mode
of variation of the item
the
from central 1) Absolute Mean - Mode
help in knowing about the
5) Measures of skewness
Or
differs in the Re lative Measure ,J= Stan dard Deviation
dispersion on either side of mode, which
arrangement of their frequencies. X-Z
4.1.1.2. Tests of Skewness
Following are the tests which are applied to find that a Where, X =Arithmetic mean; Z Mode: and
distribution is skewed or not: G=:standard deviation.
1) If a distribution is skewed then the value of mean,
median and mode would not coincide. The value of 2) If mode is not determined, then
median generally lies between the mean and the Absolute Measure,
mode. In a moderately asymmetrical distribution, Sk = 3(Mean - Median) or 3(X-M)
Mean Mode = 3 (Mean -Median)
Relative measure, J =
3(Mean Median ) or
’3 Median =3 Mean + Mode - Mean
Stan dard Deviation
=2 Mean + Mode
=2 Mean + Mode + 2 Mode -
3(X-M)
2 Mode Where, M= Median.
=3Mode + 2 (Mean Mode) Note: Mathematically there are no limits for J, but
’ Median = Mode +(Mean - Mode ) practically
Mean Mode
J= takes values between ± 1;
2) If a distribution is skewed then the two quartiles S tan dard Deviation
would not be equi-distant from the median. In other 3(Mean - Median) takes values between ±3
words, it can be said that (Q - M) (M-Q) #0. J=
S tan dard Deviation
3) If a distribution is skewed then its graph would not
give a symmetrical bell-shaped curve.
4) The sum of positive deviations and the sum of negative
Example 1: From the following data find out the K
Pearson's Coefficient of Skewness:
deviations from the median would not be equal.
Measurement 20 21 22 24 25
5) At various points, frequencies are not equally
distributed which are equi-distant from the mode. In 1 3 8 1 6 1
Frequency
an asymmetrical distribution (Mean - Median) = 3
(Mean - Mode). Solution: Let the assumed mean (A) = 22
Calculation of Karl Pearson's Coefficient of Skewness
4.K13.
1)
Advantages of Skewness Measurement| Frequency|d, fd,
a Af given distribution is normal then the skewness (X) () (X
would be zero 'and it is called symmetric distribution. 22)
But generally, data points are not perfectly 20 -2 -2 4
2) With the help of skewness, we
symmetric. 21 3 -3
know
from the mean is whether positive or that the deviation 22 8 0
negative. 23 + 1 + 11 1
3) D'Agostino's K-squared test is 24
a goodness-of-fit 24 6 +2 + 12
normality test based on sample skewness and sample 25 1 +3 +3 9
kårtosis. N=30 fd, -51

4/1.1.4. Measure of Skewness +21

Measure of skewness may be
freguency distribution, absolutesubjective or relative. In a
measures tell us about the ArithmeticMean, (X) = A+ = 22+
21 = 22.7
direction and extent of asymmetry. Relative N 30
generally called coefficient of skewness, providesmeasures. Mode (by inspection) = 23
the
 Measures of Shape andI Relative Location (Chapter 4)
59
Standard Deviation,
2
Here the class-interval (55-65) has the maximum
|51 frequency, i.e., 20, therefore, modal class is (55-65). Now
N we can calculate the modal value of using the formula,
V30
= 1.7-0.49 =/1.21 =1.1 MTde = L, + fm -f, -xi
2fm-f, -f,
Absolute Measure, Sk= X-Z= 22.7-23 Again we have,
Karl Pearson's
=-0.3 L=55, fn = 20, f = 12, f, 15 and i = 10;
Coefficient of Skewness,
J= X-Z_ 22.7 -23 0.3 Mode = 55+
20-12
-x10= 55 +
80
1.1 1.] =-0.273 2x20-12-15 13

amnle 2: From the information given

Or Modal value = 55 +6.15= 61.15 (approx.)
Vorl PearSon'sCoefficient of Skewness: below, calculate Karl Pearson's Coefficient of Skewness:
X-Z 55.3 -61.15
Measure Place A Place B J= -=-0.468
Mean 12.5
160 150
Median
Standard deviation
142 145 4.1.1.6. Bowley's Coefficient of Skewness
28 52
Third quartile 198 An alternative mneasure of skewness has been given by
255
First quartile 68 78 Professor A.L. Bowley. It is based on the quartiles.
Solution:
If a distribution is symmetric then the frst and third
quartiles are equi-distant from the median which is shown
Place A: J=. 3(X-M)_3(160142)
28
3x18
-=1.93
in the following diagram. If the distribution is symmetric
then:
28
Place B: J=X-M) 3(150- 145) 15 Q3- Median = Median Q,
52 52
=0.3 Q3+Q-2 Median =0
Example 3: Following is the frequency distribution of - Media
weights of 60 students:
Weight (in kg.) 25-35 35-45 45-55 55-65 65-75
No. of Students 5 8 12 20 15 Figure 4.2
Compute the Karl Pearson's coefficient of Skewness. If the given distribution is positively skewed then the
top
25% of the items will tend to be farther from
median than
Solution: Let assumed mean (A) =55 the bottom 25%. This means that Q, will be farther from
Weight Mid- No. of d,= median than O, and the reverse will be for negative
(X) Point Students CX-d, = skewness. Hence a possible measure is:
25-35 30
(X) () A) (Q,-Med.) -(Med.-Q,) Q, +Q,-2 Med.
-25 -25 125 3-Med.) +(Med.-Q,)
35-45 40 15 -3 24 72
45-55 50
SK; = Bowley's coefficient of skewness.
12 -1 -12 12
55-65 60 20 +5 + 1 20 20 Properties of Bowley's Coefficient of Skewness
65-75 70 15 + 15 +3 45 135 1) If the distribution has open end
class intervals then the Bowley'sclasses
Total f= 60 or unequal
useful. In this measure is very
=4 =364 condition Pearson's coefficient of
skewness cannot be used.
AM.(X) =A+xi= 55 + 4 2) Bowley's measure is based on the
central 50%
data while ignoring the remaining 50% of of the
= $5.3 towards both the extremes. This is one of thethe data
limitations of Bowley's measure. major
Ef(a,)?Efd, 3) Continuous frequency distribution is the basis of the
Bowley's measure.
4) Limits for Bowley's
coefficient of skewness are:
364 -1s SK S 1, i.e., Bowley's
x5
60 ranges from -1 to 1: coefficient of skewness
5) The values of the
61-5=V61-0.0044xs coefficient of
Bowley's formula and Pearson'skewness obtained by
225
compared. f the distribution is s formula cannot be
=2.5 x5 = 12.5 =0, which means the ahsence cf symmetrical then
cleunass
SKe
60 (Unit-1) MBA First Semester (Business Statistics and
Analytics) AKTII
Example 3: Find Bowley's Cocfficient of Skewness, if th th
difference between twoquartiles = 7, Sumof two quartiles 1) Mcdian (M) is the value of or
150
=24 and Median = l1. or 75h
item, which lies in in the class-interval (500-600).
Solution: Cocfficient of skewness can be detcrmincd by
applying Bowley's method: M= L+x(L
f -L)
Cocfficicnt of Skewness (SK,) = &+Q-2Med. Here, L = 500, f = 30,c =74 and (Ln-L) = 100.
Q,-Q,
Hence,
Q,-Q=7,Q; + Q= 24, Median = 11
M=500+ (7574)
x100 = 500+= 503.33
Coefficient of Skewness (SKp) = 24-2x11 24-22 30 3
7 7
0.285 2) Lower Quartile (0,) is the value of
or 37.5th
Example 4: For a distribution. Bowley's coefficient of item which is lies in the
skewness is 0.56, Q, = 16.4 and Median = 24.2. What is class-interval (300 400).
N
the coefficient of quartile deviation? -C

Q =L +L4 f -xi
Solution: Bowley's Coefficient of skewness is:
Q3 +Q-2M Here, L =300, = 400, f =20, c= 28, i= (400 -
Sk 300) = 100
Substituting the values in the above formula, Q, =300+ 37.5-28 -x100 = 300 + 9.5 x100
20 20
SkB Q3+16.4-(2x24.2)
Q3-16.4 =300 +
95
= 300 +47.5 =347.5
2
-0.56 Q3+16.4 48.4
th
Q3-16.4 3) Upper Quartile (Q3) is the value of 3N
Or l12.5th
or
-0.56 (Q3-16.4) =Q3-32 4
or
-0.56 Q3 +9.184=Q3-32 item which is lies in the
class-interval (600-700).
or -0.56 Q3 -Q,=-32 -9.184 3N
- 1.56 O% =-41.184
Q3 = L + x i
Q3 = -41.184 = 26.6 f
-1.56 Here, L= 600, y=700, f = 28, c= 104, i= 100
Now, we have the values of both the upper and the
quartiles. lower Q3 =600 +112.5104 -x100 = 600 + 8.5x100
28 28
Coefficient of quartile deviation = Q3-Q1 = 600 + 30.35 = 630.35
Q3 +Q
26.4 -16.4 10
Bowley'sCoefficient of Skewness or
26.4 +16.4 Q, +Q-2M 630.35 +347.5-2x503.33
42.8 SK
=0.234 approx. 630.35 -347.5
Example 5: Calculate Bowley's
Coefficient of 977.85-1006.66 28.81
from the data given below: Skewness 282.85 282.85
=-0.102
Profits per Shop ) |100-200-300-
200 300 400 400-500-600-700
500 600 700
800
Example 6: Compute an appropriate measure of skewness
Number of Shops 10 18 20 26 30 28 18 for the following data:
Solution: Sales ( lac) Number of Companies
Below 50 12
Calculation of Coefficient of Skewness
Profits per Number of 50-60 30
Shop ) (X) Shops (f) Cumulative 60-70 65
100-200 10 Frequency
10
(c.£.) 70-80 78
200-300 18 80-90 80
28
300-400 20 90-100
48 55
400-500 26
100-110 45
500-600 30
104 110-120 25
600-700 28
132 Above 120 10
700-800 18 150
 Measures of Shape and Relative Location (Chapter 4)
61

Solution: The given series is an open-ended series. So

Bowley's coefficient of skewness would be the most 4.1.2. Moments
appropriate measure of skewness. According to Trederic Mills, "Moment is a familiar
Table 4.1 mechanical term for the measure of a force with reference
Sales Frequency
Cumulative Frequency to its tendency to produce rotation. The strength of this
Klac) (No. of Companies) tendency depends, obviously, on the amount of the force
Below50 12 12 and the distance from the origin of the point at which the
50-60 30 42 force is exerted".
60-70 65 107
78 The definition of moments shows that it includes two
70-80 185 factors such as the quantum of the force and the distance
80-90 80 265
90-100 55 320
from which it is applied. If f,, f, and f, are the forces
100-110 45 365
applied with the distances of x1, X2, X; respectively, then
110-120 25
f;x, is the moment of the first force, f>x is the moment of
390
Above 120 10
the second force and fx3 is the moment of the third force.
400
N= 400
If these moments are added then we get the total moments
which is represented by fx. If this total value is divided
Here, by the total of the force of Si, then we get a value
Q, =l+ (N/4-O)xh
f Zfx which is called a 'moment'.
NowC.F. just greater than NJ4 = 100 is 107, the class
interval for Q, is 60-70. If the total force on both sides of the origin (which is zero)
l=60, C= 42, h=10, f= 65 is equal then the above scale will be balanced.
Q, = 67.38
and The following diagram below will illustrate the point:
+2 +3 +4
Md = (4+ (N/4-C),xh =80+ 200 -185
80
x10= 81.88
4 -3 +1

Now C.F. just greater than N/2 = 200 is 265.

l= 80, C= 185, h = 10, f =80 10 kg
200-185 fx =10x3 =30
Md = 80+ -x10=81.88 15 kg
80
(3N/2-C)-Xh fx= 15 x 2= 30
and Q; =l+
f Fulcrum
Again C.F. just greater than 3N/2 = 300 is 320. The above scale will balance if the total force on either
l=90, C= 265, h= 10, f= 55 side of the origin (which is zero) is equal.
300 26S 4.1.2.1. Moments about the Mean/Central
Q3 = 90+ -x10= 96.36
55
Moments
Bowley's coefficient of skewness Moments about the mean are generally represented by
SK t+Q, -2Md 96.36+ 67.38- 2x81.88 u (read as mu)
96.36 67.38 Thus the various moments about the mean would be:
Individual Series Frequency Distribution
=0.00069 approximately First Moment about the Mean:

Iis shows that there is negative skewness, which has a N N

-=0 x-) or
Very negligible magnitude. Second Moment about the
Mean:
4.1.1.7. Difference between Skewness and
=
DispersionSkewness Dispersion N
Ef

gives the idea about|Dispersion gives

the idea Third Moment about the Mean:
|Skewness
the direction of variation. about the amount of the
variation. Or
know the N N
the variation Dispersion is used to
of data ndency-of
points into a certain range of the data points and Fourth Moment about the Mean:
can be understood offset from the mean.
direction
with the use of
skewness.
gives an idea about Dispersion gives an idea
about N Ztx-xa O

Skewness
he shape of the
series. the composition of the series. Where, N=2f
62 (Unit-) MBA First Semester (Business Statistics and Analytics) AKTU

4.1.2.2. Coefficients Based on Moments curve is (ermed as 'Leptokurtic" and a flat topped curve is
On the basis of relative proportions of different moments, termed as "Platykurtic'.
Alpha () Beta () and Gamma () cocfficicnts are 1) Leptokurtic: A frequency curve
which is more
calculated with the hclp of the following formulae: peaked than the normal curve is
known as
Leptokurtic. In comparison to
Alpha Beta Cocfficicnts Gamma the
Coefficients Coefficients distribution, the Leptokurtic distribution has normal
higher
peak around the mean which leads to thick taila
B, ==a? both sides. These peaks result from the data
highly concentrated around the mean which ie
because the
variations are lower within the observations.
a,= s l VB, 3/2a Y2 =B, -3 2) Platykurtic: A frequency curve
H4-3u,
2
peak than the normal curve is which has flatter
2 In comparison to the known as Platykurtic
normal distribution. the
Platykurtic distribution have flatter peak around the
=O4 mean which leads to thin tails on
peaks result from the data which is both
less
sides. These
variationsconcentrated
around the mean because the
2 within the observations. are large
3) Mesokurtic: A frequency curve with a
These coefficients are used to measure is known as normal
The kurtosis coefficientcurve
Kurtosis.
skewness and
normal Mesokurtic. of a
distribution
is 3.
high then the distribution will
Ifthe kurtosis coefficient is
4.1.3. Kurtosis the mean. When the be more peaked around
In than 3 then the kurtosis coefficient is greater
probability theory and statistics, measurement of the distribution is called leptokurtic and if
"peakedness" of the it is less than 3 then it is called
valued probability
random variable is known asdistribution of a real platykurtic.
kurtosis. In the figure 4.3, curve No. 1
is
The form of any distribution is given by curve No. 2 is more peaked than thenormal normal
or mesokurtic,
distribution is plotted on the graph then it kurtosis. If any is leptokurtic and curve No. 3 is curve, hence
more flat than the normal
a normal curve or a curve more flat than the represents either curve, and is platykurtic.
or a curve more peaked than the norma curve,
normal curve. Kurtosis is
a measure which tells how
much 'peaked' or flat' the data Lepto-kurtic Curve No. 2
is in relation to a normal
distribution. In other words,
kurtosis depicts a distinct peak near the mean, shows a
rapid decline and ends up with a heavy Curve No. 1
thin tail. tail, ending up with Meso-kurtic

According to Simpson and

Kurtosis of a distribution is Kafa, "The degree of
peakedness of a normal curve' measured relative to the
Curv No. 3
Difference between Skewness and Kurtosis
Skewness
A measure of the
Kurtosis Platy-kurtic
A measure of the
asymmetry of extent to
which
distribution. observations cluster
around a central point.
A
distribution with a
Positive kurtosis indicates that Figure 4.3: Kurtosis
significant positive the observations
skewness has a long right cluster more Measure of Kurtosis
tail. and have longer tails.
Kurtosis is measured by the Moment ratio', which is
A distribution with based on the second and fourth moments.Karl Pearson has
Negative kurtosis indicates the
significant negative observations cluster less and given the following formulae for measure of kurtosis:
skewness
tail.
has a long left have shorter tails. Measure of Kurtosis or B, (Beta-two) or a4 (alpha-four)
A symmetrical distribution Fourth moment
A Gaussian distribution has a
has a skewness of zero. Second moment
kurtosis of 0.

Types of Curves In a normal distribution B will be equal to 3. If it is

The terms Mesokurtic', Leptokurtic' and
were introduced by Karl Pearson in 1905.Platykurtic?
A peaked
greater than 3, the curve is more peaked than normal, if
less than 3, the curve is flatter at the top than normal.
 63
Measures of Shape
and Relative Location (Chapter 4)
about the mean
Example 8: Calculate the first four moments
Thus:
and also the value of B,and B, from the following data:
the curve is normal or Mesokurtic, 70-80
Ifß, =3, Marks 0-10 -50 -60
20-30-40
90
3,the curve is Leptokurtic or more pcaked, '".', 20 30 40 50 60 70 80
If B, >
10
13 15 22
<3,the curve is Platykurtic or flat toppcd. No. of 2 6
If B, Students

measure of kurtosis is also represented by Y,. (Greek Solution:

The if. Calculation of Moments and Bi, Bz
two) Therefore
lettergamma
B,-3 =0, the curve is Mesokurtic.
Marks Mid No. of d= fd
Point students (X
(X) () S4)
-235298| 11529602
positive, the curve is Leptokurtic, 2 10 49 -98 4802
Y, is 0- 10 5
6 90 39 234| 9126 -355914| 13880646
isnegative, the curve
is Platykurtic. 10- 20 15
9 225 29- 261 7569 -219501| 6365529
20 -30 25
19-152 2888 54872 1042568
Example 7: Calculate first four moments from the
30 40
40- 50
aa 35
45 13
280
585 117 1053 - 9477
18
85293
18
B. 1 18
following data and find out B, and
50 - 60 55 18 990
15 975 11 165 1815 19965 219615
60-7O 65 4278582
1650 21 462 9702 203742
70 80 75 22
60 61 62 6727 208537 6464647
Weight (in Kg.) 6365707580 80- 90 85 7 595 31 217
Efd= d ' = Sfd'=
No. ofWorkers 3 4 7 9 12 6 1 2 f =100 EX = 43700442800 43866500
5400

5400
Solution: = 54
Calculation of Moments 100
Weight No. of fX d(X-X) fd fd fd fd Sfd
Workers =0,
(X) 100
()
60 3 180 -5 -15 75-375| 1875
16 64 256 1024 43700
61 4 244 4 :437
7 434 3 -21 63 189 567 100
62
63 9 567 -2 36 -72 144
0
442800
65 12 780 =-4428,
70 6 420 30 150750 3750 100
75 75 10 10 100 1000| 10000
160 15 30 450 6750|101250 43866500
80 2 =438665
Sf= 44 SfX 100
=0 118610
|2860 9387608 (4428)? 19607184
=0.235;
(437) 83453453
2860 438665 438665
X= 65 = 2,297
44 (437)2 190969

fd The value of B is lesser than 3; hence the curve is

=0,
Sf 44 platykurtic.

938 Example 9: The first central moments of a distribution are

=21.32 0, 9, -21, and 64. Comment on the skewness and kurtosis
44 at the distribution.

7608 Solution: We are given Ë = 0, M2 =9, H3 =-21, and u4 =

=172.9,
44 64. For commenting on the skewness we calculate y,:
G=Vu, 9=3
fa 118610 = 2695.68,
21 21
44 =-0.777
(3)27
29894.41
B, Mi72.9)? =3.1; The distribution is negatively skewed (It may be noted that
9690.84
H (21.32)* if we calculate its value will be
2695.68 B, i(-21)2 441
B, 4 2695.68 =5.9 +0.6049. But this would be
454.54 (9) 729
(21.32)
Wrong as u3 is negative). For commenting on the kurtosis
The value of B2 is greater than 3; hence
the curve is we calculate BT:
Leptokurtic.