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Basic Question 8 of 13
If a distribution is right skewed, which of the following is (are) true?
II. Its skewness is negative.
III. It has a positive mean.
IV. Large positive deviations dominate large negative deviations.
I. It cannot be normally distributed.
II. Its skewness is negative.
III. It has a positive mean.
IV. Large positive deviations dominate large negative deviations.
User Contributed Comments 3
| User | Comment |
|---|---|
| Yooo | Dominate? |
| danlan | Suppose the mode is 100, max is 200 and min is 50. Large positive deviation is 100, which dominates large negative deviation 50 |
| bobert | Or in simpler terms, suppose the mean is 50, if you have 2 outliers on each side, the ones on the right, say 600 and 450 are DOMINATING the negative ones, say 90 and 130. Basically there is a stronger pull to the right by the large deviations. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
interpret and evaluate measures of skewness and kurtosis to address an investment problem
CFA® 2025 Level I Curriculum, Volume 1, Module 3.