Lecture 9 Moments
Lecture 9 Moments
Lecture 9 Moments
Technology, Sahiwal
Lecture 7
Dr. SHAHID QAISAR
Moments
A moment is a quantitative measure of the shape of a set of points.
The first moment is called the mean which describes the center of the
distribution.
The second moment is the variance which describes the spread of the
observations around the center.
Other moments describe other aspects of a distribution such as how the
distribution is skewed from its mean or peaked.
A moment designates the power to which deviations are raised before
averaging them.
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In General,
x x
i
f xi
f x x
f
i
Frequency (f)
65-84
85-104
105-124
125-144
145-164
165-184
185-204
Total
9
10
17
10
5
4
5
60
10
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Frequency (f)
65-84
85-104
105-124
125-144
145-164
165-184
185-204
Total
9
10
17
10
5
4
5
60
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Moment Ratios
32
4
1 3 , 2 2
2
2
15
m32
m4
b1 3 , b2 2
m2
m2
Kurtosis
Karl Pearson introduced the term Kurtosis (literally the amount of hump) for
the degree of peakedness or flatness of a unimodal frequency curve.
When the peak of a curve
becomes relatively high then that
curve is called Leptokurtic.
When the curve is flat-topped,
then it is called Platykurtic.
Since normal curve is neither
very peaked nor very flat topped,
so it is taken as a basis for
comparison.
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Skewness
A distribution in which the values equidistant from the mean have equal
frequencies and is called Symmetric Distribution.
Any departure from symmetry is called skewness.
In a perfectly symmetric distribution, Mean=Median=Mode and the two
tails of the distribution are equal in length from the mean. These values are
pulled apart when the distribution departs from symmetry and consequently
one tail become longer than the other.
If right tail is longer than the left tail then the distribution is said to have
positive skewness. In this case, Mean>Median>Mode
If left tail is longer than the right tail then the distribution is said to have
negative skewness. In this case, Mean<Median<Mode
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Skewness
When the distribution is symmetric, the value of skewness should be zero.
Karl Pearson defined coefficient of Skewness as:
Sk
Mean Mode
SD
Sk
3 Median Mean
SD
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Skewness
sk
Q3 Q2 Q2 Q1
Q3 Q1
3
,
3
m
sk 33 ,
s
sk
19
Q1 2Q2 Q3 Q1 2Median Q3
Q3 Q1
Q3 Q1
Kurtosis
4
,
2
2
m4
Kurt b2 2 ,
m2
Kurt 2
Kurtosis
Excess Kurtosis (EK): It is defined
as:
EK=Kurtosis-3
For a normal distribution, EK=0.
When EK>0, then the curve is said
to be Leptokurtic.
When EK<0, then the curve is said
to be Platykurtic.
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Kurtosis
Another measure of Kurtosis, known as Percentile coefficient of kurtosis is:
Kurt=
Q.D
P90 P10
Where,
Q.D is semi-interquartile range=Q.D=(Q3-Q1)/2
P90=90th percentile
P10=10th percentile
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Review
Lets review the main concepts:
Moments
Moments about Mean (Central Moments)
Moments about any arbitrary Origin
Moments about Zero
Related Excel Demos
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Review
Lets review the main concepts:
Relation b/w central moments and moments about origin
Moment Ratios
Skewness
Kurtosis
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Next Lecture
In next lecture, we will study:
Introduction to Probability
Definition and Basic concepts of probability
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Questions
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