Calculating and Interpreting Quartiles, Quintiles, Deciles and Percentiles

Quartiles, quintiles, deciles, and percentiles are values or cut points that partition a finite number of observations into nearly equal-sized subsets. The number of partitions depends on the type of cut point involved.

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Measures of Dispersion

Measures of dispersion are used to describe the variability or spread in a sample or population. They are usually used in conjunction with measures of central tendency such as the mean and the median. These are the range, variance, absolute…

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Chebyshev’s Inequality
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Coefficient of Variation
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Skewness

Skewness refers to the degree of deviation from a symmetrical distribution, such as the normal distribution. A symmetrical distribution has identical shapes on either side of the mean. Distributions that are asymmetrical have unequal shapes on either side of the…

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Unimodal Distribution – Locations of the Mean, Mode and the Median

A unimodal distribution is a distribution that has one clear peak. The values increase first, rising to a single highest point where they then start to decrease. A unimodal distribution can either be symmetrical or nonsymmetrical. A symmetrical distribution is…

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Kurtosis and Skewness

Kurtosis refers to measuring the degree to which a given distribution is more or less ‘peaked’ relative to the normal distribution. The concept of kurtosis is very useful in decision-making.  In this regard, we have 3 categories of distributions:

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Arithmetic Mean Return Vs Geometric Mean Return

Both arithmetic return and geometric return are methods commonly used to calculate the yield on a given investment. However, the return that really matters is the geometric return, not the arithmetic return. A good understanding of the difference between the…

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Introduction to Probability: Definition of Terms

Probability is a measure of the likelihood that something will happen. We usually express probabilities as percentages, from 0 (impossible to happen) to 100% (guaranteed). In fact, we can express almost any event as a probability, e.g., the likelihood that…

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Defining Properties of a Probability

Defining properties of a probability refer to the rules that constitute any given probability. They are outlined below.

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