What Does A Positive Kurtosis Mean?

What does kurtosis mean in SPSS?

Kurtosis – Kurtosis is a measure of the heaviness of the tails of a distribution.

In SAS, a normal distribution has kurtosis 0.

Kurtosis is positive if the tails are “heavier” than for a normal distribution and negative if the tails are “lighter” than for a normal distribution..

What does a high positive kurtosis mean?

Kurtosis is a statistical measure that defines how heavily the tails of a distribution differ from the tails of a normal distribution. … A large kurtosis is associated with a high level of risk for an investment because it indicates that there are high probabilities of extremely large and extremely small returns.

What does the kurtosis value mean?

Kurtosis is a measure of whether the data are heavy-tailed or light-tailed relative to a normal distribution. That is, data sets with high kurtosis tend to have heavy tails, or outliers. Data sets with low kurtosis tend to have light tails, or lack of outliers. A uniform distribution would be the extreme case.

Is kurtosis always positive?

Also, kurtosis is always positive, so any reference to signs suggests they are saying that a distribution has more kurtosis than the normal. Skew indicates how asymmetrical the distribution is, with more skew indicating that one of the tails “stretches” out from the mode farther than the other does.

What is kurtosis with example?

Kurtosis is a statistical measure used to describe the degree to which scores cluster in the tails or the peak of a frequency distribution. The peak is the tallest part of the distribution, and the tails are the ends of the distribution. There are three types of kurtosis: mesokurtic, leptokurtic, and platykurtic.

How do you interpret skewness and kurtosis?

A general guideline for skewness is that if the number is greater than +1 or lower than –1, this is an indication of a substantially skewed distribution. For kurtosis, the general guideline is that if the number is greater than +1, the distribution is too peaked.

Can kurtosis be negative?

In statistics, kurtosis is used to describe the shape of a probability distribution. Specifically, it tells us the degree to which data values cluster in the tails or the peak of a distribution. The kurtosis for a distribution can be negative, equal to zero, or positive.

What does negative skewness and kurtosis mean?

Positive Skewness means when the tail on the right side of the distribution is longer or fatter. The mean and median will be greater than the mode. Negative Skewness is when the tail of the left side of the distribution is longer or fatter than the tail on the right side.

What does it mean when the kurtosis is negative?

A distribution with a negative kurtosis value indicates that the distribution has lighter tails than the normal distribution. For example, data that follow a beta distribution with first and second shape parameters equal to 2 have a negative kurtosis value.

What is acceptable kurtosis?

Some says for skewness (−1,1) and (−2,2) for kurtosis is an acceptable range for being normally distributed. Some says (−1.96,1.96) for skewness is an acceptable range.

Is high kurtosis good or bad?

Kurtosis is only useful when used in conjunction with standard deviation. It is possible that an investment might have a high kurtosis (bad), but the overall standard deviation is low (good). Conversely, one might see an investment with a low kurtosis (good), but the overall standard deviation is high (bad).

How do you interpret kurtosis?

If the kurtosis is greater than 3, then the dataset has heavier tails than a normal distribution (more in the tails). If the kurtosis is less than 3, then the dataset has lighter tails than a normal distribution (less in the tails).