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Lesson 19 of 19

Relative Locations of Mean, Median and Mode

The skewness of a distribution can have an impact on the location of mean, median and mode.

The relative locations of these measures on symmetric, negatively skewed, and positively skewed distributions are shown below. We have assumed a unimodal distribution, i.e., it has only one mode.

Symmetric Distribution

Mode = Median = Mean

Negatively Skewed Distribution

Mode > Median > Mean

Positively Skewed Distribution

Mode < Median < Mean

Remember that skewness pulls the mean in the direction of the skew. Median is always between mean and mode.

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Skewness and Kurtosis

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Statistical Concepts and Market Returns

19 lessons

Lessons

1
Descriptive Vs. Inferential Statistics
2
Types of Measurement Scales
3
Parameter, Sample Statistic, and Frequency Distribution
4
Relative Frequencies and Cumulative Relative Frequencies
5
Properties of a Data Set (Histogram / Frequency Polygon)
6
Measures of Central Tendency
7
Calculating Arithmetic Mean
8
Calculating Weighted Average Mean
9
Calculating Geometric Mean
10
Calculating Harmonic Mean
11
Calculating Median and Mode of a Data Set
12
Quartiles, Quintiles, Deciles, and Percentiles
13
Range and Mean Absolute Deviation
14
Variance and Standard Deviation
15
Chebyshev’s Inequality
16
Coefficient of Variation
17
Sharpe Ratio
18
Skewness and Kurtosis
19
Relative Locations of Mean, Median and Mode

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Statistical Concepts and Market Returns
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