Page 1 FINANCIAL MATHS GROUP PROJECT Page 2 FINANCIAL MATHS GROUP PROJECT “ “ Mathematics is the only science Mathematics is the only science where one never knows what one where one never knows what one is talking about nor whether what is talking about nor whether what is said is true” - Bertrand Russell is said is true” - Bertrand Russell LET US GIVE A TRY !!!!! LET US GIVE A TRY !!!!! Page 3 FINANCIAL MATHS GROUP PROJECT “ “ Mathematics is the only science Mathematics is the only science where one never knows what one where one never knows what one is talking about nor whether what is talking about nor whether what is said is true” - Bertrand Russell is said is true” - Bertrand Russell LET US GIVE A TRY !!!!! LET US GIVE A TRY !!!!! SKEWNESS SKEWNESS AND AND KURTOSIS KURTOSIS Page 4 FINANCIAL MATHS GROUP PROJECT “ “ Mathematics is the only science Mathematics is the only science where one never knows what one where one never knows what one is talking about nor whether what is talking about nor whether what is said is true” - Bertrand Russell is said is true” - Bertrand Russell LET US GIVE A TRY !!!!! LET US GIVE A TRY !!!!! SKEWNESS SKEWNESS AND AND KURTOSIS KURTOSIS Defining Skewness Skewness is the measure of asymmetry of the distribution of a real valued random variable. It is the standardized 3rd central moment of a distribution ? Positive Skewness indicates a long right tail ? Negative Skewness indicates a long left tail ? Zero Skewness indicates a symmetry around the mean Page 5 FINANCIAL MATHS GROUP PROJECT “ “ Mathematics is the only science Mathematics is the only science where one never knows what one where one never knows what one is talking about nor whether what is talking about nor whether what is said is true” - Bertrand Russell is said is true” - Bertrand Russell LET US GIVE A TRY !!!!! LET US GIVE A TRY !!!!! SKEWNESS SKEWNESS AND AND KURTOSIS KURTOSIS Defining Skewness Skewness is the measure of asymmetry of the distribution of a real valued random variable. It is the standardized 3rd central moment of a distribution ? Positive Skewness indicates a long right tail ? Negative Skewness indicates a long left tail ? Zero Skewness indicates a symmetry around the mean NORMAL DISTRIBUTION NORMAL DISTRIBUTION SKEWNESS NEGATIVE POSITIVERead More

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