Question
Download Solution PDFIf the population kurtosis of the observations 16,12,6,2,4,10 is 1.7414, then population kurtosis of the 8,6,3,1,2,5 is
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is 1.7414
Key Points
- Kurtosis = Fourth Moment / (Second Moment)2
Kurtosis = 58.6921/(5.8056)2
Kurtosis = 1.7414
Important Points
- An attribute of a dataset can be described using the statistical measure kurtosis. On a graph, regularly distributed data typically resembles an upside-down bell when plotted. The bell curve is a name for this. The tails on either side of the curve are often formed by the plotted data that are most dispersed from the data mean. Kurtosis reveals how much information is included in the tails.
- Leptokurtic (below normal), platykurtic (above normal), and mesokurtic (normal) are the three categories of kurtosis (more than normal).
- Only when combined with standard deviation is kurtosis beneficial. Even if an investment has a high kurtosis (poor), the overall standard deviation is likely to be modest (good). On the other hand, a low kurtosis (excellent) investment could have a large total standard deviation (bad).
Hence, if the population kurtosis of the observations 16,12,6,2,4,10 is 1.7414, then the population kurtosis of the 8,6,3,1,2,5 is 1.7414
Last updated on Jul 19, 2025
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