Question
Suppose that proceeds from a certain investment were estimated as follows: 7.5, 6.25, 12.75, 8.5, -0.25...
Suppose that proceeds from a certain investment were estimated as follows:
7.5, 6.25, 12.75, 8.5, -0.25
What type of Kurtosis will the above yield? Show you answer both by calculation and in a graph.
Homework Answers
Answer #1
Mean ˉx=∑x/n
=(7.5+6.25+12.75+8.5+-0.25)/5
=34.75/5
=6.95
Sample Kurtosis =∑(x-ˉx)^4/(n-1)⋅S^24
=3825.1388/4⋅(4.7084)^4
=3825.1388/4⋅491.4535
=1.9458
Interpretataion: A positive value tells you that you have heavy-tails.The number is greater than +1, the distribution is too peaked.
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