Explanation:
In a negatively skewed distribution, the mean is less than the median, which is less than the mode. Here we have:
This pattern indicates negative skewness.
Since 2 < 3, the distribution is platykurtic.
The distribution has negative skewness and platykurtic kurtosis, which corresponds to option C.
Ultimate access to all questions.
An analyst is concerned with the symmetry and peakedness of a distribution of returns over a period of time for a company she is examining. She does some calculations and finds that the median return is 4.2%, the mean return is 3.7%, and the mode return is 4.8%. She also finds that the measure of kurtosis is 2. Based on this information, the correct characterization of the distribution of returns over time is:
A
Positive | Leptokurtic
B
Positive | Platykurtic
C
Negative | Platykurtic
D
Negative | Leptokurtic
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