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Measures of Distribution Shape, Relative Location, and Detecting Outliers Distribution Shape Chebyshev’s Theorem Empirical Rule Detecting Outliers IS 310 – Business Statistics 2 2 Slide Slide Distribution Shape In order to understand the shape of a distribution, we will refer to Histogram discussed in Chapter 2. By looking at the Histogram, we will determine the shape of the distribution. The shape of a distribution is measured with a quantity called Skewness. IS 310 – Business Statistics 3 3 Slide Slide Distribution Shape: Skewness An important measure of the shape of a distribution is called skewness. The formula for computing skewness for a data set is somewhat complex. Skewness can be easily computed using statistical software. IS 310 – Business Statistics 4 4 Slide Slide Distribution Shape: Skewness Symmetric (not skewed) • Skewness is zero. • Mean and median are equal. .35 Skewness = y.35 0 cy c.30 nn.30 ee.25 uu.25 qq ee.20 rr.20 FF .15 ee.15 vv ii tt.10 aa.10 ll ee.05 RR.05 0 0 IS 310 – Business Statistics 5 5 Slide Slide Distribution Shape: Skewness Moderately Skewed Left • Skewness is negative. • Mean will usually be less than the median. .35 Skewness = - .31 y.35 cy c.30 nn.30 ee.25 uu.25 qq ee.20 rr.20 FF .15 ee.15 vv ii tt.10 aa.10 ll ee.05 RR.05 0 0 IS 310 – Business Statistics 6 6 Slide Slide
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