Understanding Skewness. We favor parametric tests when measurements exhibit a sufficiently normal distribution. In simple words skewness is the measure of how much the probability distribution of a random variable deviates from the normal distribution.
Perfectly symmetrical distribution will have a skewness equal to zero. Skewness quantifies a distributions lack of symmetry with respect to the mean. Let me break it down for you.
Jul 05 2020 Skewness is the measure of the asymmetry of a probability distribution and is given by the third standardized moment.
The skewness value can be positive or negative or undefined. Asset Prices as Examples of a Skewed. We favor parametric tests when measurements exhibit a sufficiently normal distribution. Perfectly symmetrical distribution will have a skewness equal to zero.
