Positive Skewness Meaning. In probability theory and statistics skewness is a measure of the asymmetry of the probability distribution of a real valued random variable about its mean. Skewness is a measure of the extent to which the probability distribution of a real valued random variable leans on any side of the mean of the variable.
In probability theory and statistics skewness is a measure of the asymmetry of the probability distribution of a real valued random variable about its mean. The skewness value can be positive zero negative or undefined. When the right tail of the histogram of the distribution is longer and the majority of the observations are concentrated on the left tail.
Definition of positive skewness.
The coefficient of the skew is the measurement of the magnitude of the symmetry in the distribution of outcomes of a specific data set of occurrences. If the data set is skewed to the right the mean is greater than the mode and so subtracting the mode from the mean gives a positive number. The distribution is positively skewed when most of the frequency of distribution lies on the right side of distribution has a longer and fatter right tail. The skewness enables traders and investors a way to quantify where the majority of outcomes fell for returns risks trades and stocks in the past inside a probability curve.
