Question: For a random variable X with mean ????, standard deviation ????, and third central moment ????3 = E[(X ????)3], the coefficient of skewness for
For a random variable X with mean ????, standard deviation ????, and third central moment ????3 = E[(X − ????)3], the coefficient of skewness for the distribution of X is given by
(this is a measure of the departure from symmetry for the distribution of X; note that ????1 can take both positive and negative values, while it is zero for symmetric distributions).
Obtain the coefficient of skewness for the distribution of X when X has the density of the Pareto distribution in (6.10). What conditions are needed for the parameters of that distribution so that ????1 exists (i.e. it is finite)?
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