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.
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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