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Asymmetrical Distribution Definition
It can be described as the situation in which the values of variables occur at irregular frequencies. In this, the mean and median, as well as mode, occur at different points. An asymmetric distribution is considered to exhibit skewness and in contrast, a symmetric or normal distribution when drawn on a graph, is shaped like a bell curve where the two sides of the graph are symmetrical.
It can also be can be defined as a situation where the values of variable that is subjected to change and it tend to occur at irregular frequency and the mean. The median which is defined as one type of average that is found by arranging the values in order and then selecting the one in the middle and mode which is the average found by determining the most frequent value in a group of values.
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The median and mode will occur at different points and this is said to exhibit skewness. Conversely, a Symmetric or normal distribution where the normal distribution is a probability distribution shaped like a bell often found in the statistical sample. This normal distribution when depicted on a graph it will be shaped like a bell and the two sides of the graph will be symmetrical.
Investment return data commonly has an asymmetric distribution and this occurs because investment performance is often skewed. Since the investments experience periods of abnormally high as well as abnormally low performance. This is because sample investment performance data are always changing and the investors should consider all of these factors when attempting to gauge investment volatility by using the standard deviation.
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Skewed distributions is a statistical term that measures “asymmetry” (lack of similarity) in a “bell curve” that is the bell-shaped graph that occurs when plotting data based on normal measured traits. In “normal distribution” there should be a roughly equal number of occurrences of a measured trait on both sides of the mid-point of the bell curve and the “skewness” (percent of difference) is the statistic measure that determine how great a change there is in the number of trait occurrences on either side of the mid-point of the curve.
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