Part 3 of 5 Calculate the Pearson's index of skewness. (Round the mean, median and standard deviation to one decimal place and Pearson's index to two decima places.) It can be concluded that the distribution is (Choose one) not significantly significantly
Solución de inteligencia artificial de Upstudy
Responder
Solución
Respondido por UpStudy AI y revisado por un tutor profesional


Bonus Knowledge
To calculate Pearson's index of skewness, you'll use the formula: \( \text{Skewness} = 3 \times \left( \frac{\text{Mean} - \text{Median}}{\text{Standard Deviation}} \right) \). Once you've rounded your mean, median, and standard deviation to one decimal place, plug those values into the formula. If the skewness value is close to 0, the distribution is symmetric; if it's positive, it leans right, and if negative, it leans left. A skewness of more than 0.50 or less than -0.50 is typically considered significant. Real-world applications of skewness can be found in fields like finance, where understanding the distribution of asset returns helps gauge risk. For instance, if a mutual fund has a positively skewed return distribution, it might have a few large gains that could offset the smaller, more frequent losses, affecting investment strategies. Recognizing skewness can guide investors in making informed decisions, especially in volatile markets.
