Skewness And Kurtosis Interpretation. The frequency of occurrence of large returns in a particular direction is measured by skewness. 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.
Here x is the sample mean. Skewness tells you the amount and direction of skew departure from horizontal symmetry and kurtosis tells you how tall and sharp the central peak is relative to a standard bell curve. Skewness is a measure of the symmetry in a distribution.
For kurtosis the general guideline is that if the number is greater than 1 the distribution is too peaked.
In spss the skewness and kurtosis statistic values should be less than 1 0 to be considered normal. Why do we care. The frequency of occurrence of large returns in a particular direction is measured by skewness. For skewness if the value is greater than 1 0 the distribution is right skewed.
