Measures of Kurtosis, Business Mathematics & Statistics

# Measures of Kurtosis, Business Mathematics & Statistics Video Lecture - Business Mathematics and Statistics - B Com

## Business Mathematics and Statistics

115 videos|142 docs

## FAQs on Measures of Kurtosis, Business Mathematics & Statistics Video Lecture - Business Mathematics and Statistics - B Com

 1. What is kurtosis and how is it measured in business mathematics and statistics?
Ans. Kurtosis is a statistical measure that quantifies the shape of a probability distribution. It provides information about the tails and outliers of a distribution. In business mathematics and statistics, kurtosis is commonly measured using statistical formulas such as Pearson's coefficient of kurtosis or Fisher's coefficient of kurtosis.
 2. How does kurtosis differ from skewness in business mathematics and statistics?
Ans. While both kurtosis and skewness are measures of the shape of a probability distribution, they capture different aspects. Skewness measures the asymmetry of a distribution, indicating whether it is skewed to the left or right. On the other hand, kurtosis measures the heaviness of the tails and the presence of outliers in the distribution.
 3. What does positive kurtosis indicate in business mathematics and statistics?
Ans. Positive kurtosis in business mathematics and statistics indicates that the distribution has heavier tails and more outliers compared to a normal distribution. This means that there is a higher probability of extreme values occurring in the data. Positive kurtosis is often associated with fat-tailed distributions.
 4. What does negative kurtosis indicate in business mathematics and statistics?
Ans. Negative kurtosis in business mathematics and statistics indicates that the distribution has lighter tails and fewer outliers compared to a normal distribution. This means that extreme values are less likely to occur in the data. Negative kurtosis is often associated with thin-tailed distributions.
 5. How can kurtosis be interpreted in business decision-making?
Ans. Kurtosis can provide insights into the risk and volatility of a given distribution, which can be crucial in business decision-making. Higher kurtosis values indicate higher risk and the presence of extreme values, while lower kurtosis values indicate lower risk and a more predictable distribution. Understanding the kurtosis of a distribution can help businesses assess the potential outcomes and make informed decisions based on the level of risk they are willing to tolerate.

## Business Mathematics and Statistics

115 videos|142 docs

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