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Skewness is a statistical numerical method to measure the asymmetry of the distribution or data set. It tells about the position of the majority of data values in the distribution around the mean value. It is essential to several disciplines, including data analysis, social sciences, economics and finance.
Where:
Interpretation of Skewness Value:
Skewness > 0 indicates positive skewness.
Skewness < 0 indicates negative skewness.
Skewness = 0 indicates no skewness (symmetrical distribution).
Now we will discuss 3 types of skewness values on the basis of which the asymmetry of the graph is decided. These are as follows:
Positive skewness refers to distributions where the tail extends towards higher values. In such cases, mean is typically greater than median due to the right tail pulling the average upward
Output:
Negative skewness refers to distributions where the tail extends towards lower values. mean is typically less than median due to the left tail pulling the average downward
Output:
A histogram showing negative skewness, with a tail extending towards lower values.
Zero skewness indicates a symmetrical distribution, the mean and median are approximately equal.
Output:
R language provides multiple ways to calculate skewness, including base R functions, specialized packages and custom implementations.\
Note: Different functions may use slightly different formulas to calculate skewness (e.g., sample vs population skewness or bias correction).
As a result, the skewness values may vary slightly across methods such as manual calculation, e1071, and moments packages.
While base R does not have a built-in skewness function, we can calculate it manually:
Output:
[1] 0.5389304
The e1071 package provides skewness() function to calculate skewness.
Output:
[1] 0.3880299
Another package that can be used for calculating skewness is moments. We can also use skewness() function to get the skewness value for our data.
Output:
[1] 0.454466
This method is better for small sample.
Here are some of the main points highlighting the importance of skewness.