The skew is the third central moment divided by the cube of the standard deviation. Here I calculate skew using the binomial distribution.
YouTube T2-6 The skew (and sample skew) of a distribution
- Thread starter Nicole Seaman
- Start date
Hi @Nicole Seaman, I think in the Valuation & Risk Models notes there is a mistake on this part. Can you please check to confirm for me..? Thanks
Hi @Amierul I think it's correct (as was noted by @Garbanzo here at https://forum.bionicturtle.com/thre...-p1-t4-valuation-risk-models.23684/post-90704). In the first panel (the "positive/right" skew) above, we can see (for example) at +2.5, there is more density to the right; here, the mean > mode. although that is not always true and not the condition. I think the "optical illusion" here is simply that the zero x-axis is shown, but it has nothing to do with the skewness of the red distributions. Thanks,
Sixcarbs
Active Member
Hello Amierul, these graphs look correct to me. Can you please tell me what you think looks wrong in case I am missing something?
Sixcarbs
@David Harper CFA FRM thanks david!!
Sixcarbs
Active Member
Maybe what is a little confusing in the graphs in your original post is the new mean is not denoted for the red skewed graphs?
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