Skewness: indicator used in distribution analysis as a sign of asymmetry and deviation from a normal distribution.
- Skewness > 0 - Right skewed distribution - most values are concentrated on left of the mean, with extreme values to the right.
- Skewness < 0 - Left skewed distribution - most values are concentrated on the right of the mean, with extreme values to the left.
- Skewness = 0 - mean = median, the distribution is symmetrical around the mean.
Kurtosis - indicator used in distribution analysis as a sign of flattening or "peakedness" of a distribution.
- Kurtosis > 3 - Leptokurtic distribution, sharper than a normal distribution, with values concentrated around the mean and
thicker tails. This means high probability for extreme values.
- Kurtosis < 3 - Platykurtic distribution, flatter than a normal distribution with a wider peak. The probability for extreme values is less than for a normal distribution, and the values are wider spread around the mean.
- Kurtosis = 3 - Mesokurtic distribution - normal distribution for example.