Answer-first summary for fast verification
Answer: Negative | Platykurtic
## Explanation ### Skewness Analysis - **Mean** = 3.7% - **Median** = 4.2% - **Mode** = 4.8% In a distribution: - When **mean < median < mode**, the distribution is **negatively skewed** (left-skewed) - This occurs because the mean is pulled toward the tail on the left side ### Kurtosis Analysis - **Kurtosis** = 2 - For a normal distribution, kurtosis = 3 - When kurtosis < 3, the distribution is **platykurtic** (flatter than normal) - Platykurtic distributions have thinner tails and less peakedness than normal distributions ### Conclusion - **Skewness**: Negative (mean < median < mode) - **Kurtosis**: Platykurtic (kurtosis = 2 < 3) Therefore, the correct characterization is **Negative | Platykurtic**, which corresponds to **Option C**.
Author: LeetQuiz .
Ultimate access to all questions.
No comments yet.
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