Which of the following are true for Skewness?

A. It is a measure of symmetry of a frequency distribution.

B. For the right-skewed distribution, the mean is to the right of the median.

C. For the right-skewed distribution, the mean is to the right of the mode.

D. For the right-skewed distribution, the mean is to the left of the median.

E. For the right-skewed distribution, the mean is to the left of the mode.

Choose the correct answer from the options given below:

Correct option is A

· Skewness measures the asymmetry in the distribution of data.
· Right-skewed distributions (positively skewed) have the order: Mean > Median > Mode.
· Left-skewed distributions (negatively skewed) have the order: Mode > Median > Mean.
· D and E are incorrect because they describe left-skewed distributions instead of right-skewed distributions.
Information Booster:
1. A normal distribution has zero skewness.
2. Positive skewness indicates a longer right tail (e.g., income distributions).
3. Negative skewness indicates a longer left tail (e.g., scores in an easy test).
4. Skewness is important for financial analysis, especially in stock market trends.
5. It helps determine whether mean or median is a better measure of central tendency.
6. Finance professionals use skewness to analyze risk and return of investments.
Additional Knowledge:
· Kurtosis measures whether data distribution has heavy or light tails.
· A symmetric distribution has skewness close to zero.
· Outliers significantly affect skewness values.