What Is Skewed Distribution?

CFA® Exam: Review / Skewed Distribution


Skewness is a measure of the asymmetry of a distribution. It tells us how observations are distributed around the mean.

skewness

Symmetrical distribution

skewness: symmetrical distribution

symmetrical distribution mode = median = mean


Positively skewed distribution

If most observations lie to the left of the mean, we say that the distribution is skewed to the right or positively skewed. This kind of distribution has a long tail on its right side.

skewness: positively skewed distribution

positively skewed distribution mode < median < mean


Negatively skewed distribution

When most observations lie to the right of the mean, we say that the distribution is skewed to the left or negatively skewed. A distribution with a negative skew has a long tail on its left side.

skewness: negatively skewed distribution

negatively skewed distribution mean < median < mode


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