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Topics Covered

Raw Moments Central Moments Relations Sheppard's Correction Karl Pearson Skewness Bowley's Skewness β₁, β₂ Kurtosis
On this page
  1. 1. Concept of Moments
  2. 2. Non-Central (Raw) Moments
  3. 3. Central Moments
  4. 4. Relation between Central and Raw Moments
  5. 5. Sheppard's Correction for Moments
  6. 6. Skewness
  7. 7. Kurtosis
  8. 8. Combined Use of Skewness & Kurtosis
  9. Key Take-aways from Unit 5

1. Concept of Moments

DEFINITION

In statistics, moments are arithmetic averages of certain powers of deviations of observations from a fixed point. Moments help us describe the centre, spread, asymmetry and peakedness of a distribution.

Two Kinds of Moments

2. Non-Central (Raw) Moments

UNGROUPED DATA

The \(r^{th}\) moment about the point \(A\) is

\[ \mu'_r(A) \;=\; \dfrac{1}{n}\sum_{i=1}^{n}(x_i - A)^r \]
FREQUENCY DATA \[ \mu'_r(A) \;=\; \dfrac{1}{N}\sum f_i (x_i - A)^r \]

When \(A = 0\), \(\mu'_r\) is the \(r^{th}\) moment about the origin; when \(A = \bar{x}\), it becomes the central moment \(\mu_r\).

First Four Moments about an arbitrary point \(A\)

3. Central Moments

CENTRAL MOMENTS \[ \mu_r \;=\; \dfrac{1}{N}\sum f_i (x_i - \bar x)^r \]

Important values of central moments:

4. Relation between Central and Raw Moments

CONVERSION FORMULAE \[ \mu_2 \;=\; \mu'_2 - (\mu'_1)^2 \] \[ \mu_3 \;=\; \mu'_3 - 3\mu'_2\mu'_1 + 2(\mu'_1)^3 \] \[ \mu_4 \;=\; \mu'_4 - 4\mu'_3\mu'_1 + 6\mu'_2(\mu'_1)^2 - 3(\mu'_1)^4 \]

(Here \(\mu'_r\) are taken about an arbitrary point \(A\).)

DERIVATION — where the conversion comes from

Write each deviation from the point \(A\) as \(d = x - A\), so \(\mu'_r = \overline{d^{\,r}}\) and the mean sits at \(\bar x = A + \mu'_1\). A deviation from the mean is then \(x - \bar x = d - \mu'_1\), and every central moment is just the binomial expansion of \((d - \mu'_1)^r\) averaged:

\[ \mu_2 = \overline{(d-\mu'_1)^2} = \overline{d^2} - 2\mu'_1\overline{d} + (\mu'_1)^2 = \mu'_2 - 2\mu'_1(\mu'_1) + (\mu'_1)^2 = \mu'_2 - (\mu'_1)^2, \]

using \(\overline{d} = \mu'_1\). The \(\mu_3\) and \(\mu_4\) formulae are the same expansion of \((d-\mu'_1)^3\) and \((d-\mu'_1)^4\). Note that when \(A = \bar x\) we have \(\mu'_1 = 0\), and the formulae collapse to \(\mu_r = \mu'_r\) — as they must. The \(\mu_2\) identity is exactly the variance shortcut \(\sigma^2 = \overline{x^2} - \bar x^2\) from Unit 4, shifted to the point \(A\).

Why this matters: direct calculation of \(\mu_r\) requires the mean first. It is computationally easier to take moments about a convenient \(A\) (assumed mean), then convert to central moments using these identities.
EXAMPLE 1

Computing four central moments

Data: 2, 4, 6, 8, 10 (n = 5). \(\bar x = 6\).

Deviations \(d = x - 6\): −4, −2, 0, 2, 4.

xdd²d³d⁴
2−416−64256
4−24−816
60000
824816
1041664256
Σ0400544

\(\mu_1 = 0,\;\; \mu_2 = 40/5 = 8,\;\; \mu_3 = 0,\;\; \mu_4 = 544/5 = 108.8\). Distribution is symmetric.

EXAMPLE 2

Use raw → central conversion

Suppose \(\mu'_1 = 2,\;\mu'_2 = 20,\;\mu'_3 = 40,\;\mu'_4 = 200\) about origin.

\(\mu_2 = 20 - 4 = 16\)

\(\mu_3 = 40 - 3(20)(2) + 2(2)^3 = 40 - 120 + 16 = -64\)

\(\mu_4 = 200 - 4(40)(2) + 6(20)(4) - 3(2)^4 = 200 - 320 + 480 - 48 = 312\)

5. Sheppard's Correction for Moments

PROBLEM

When data is grouped into class intervals of width \(h\), all observations within a class are represented by the mid-point. This grouping introduces a small error in the moments. W. F. Sheppard suggested corrections for moments computed from grouped continuous data.

SHEPPARD'S CORRECTIONS \[ \mu_2 \text{(corrected)} \;=\; \mu_2 - \dfrac{h^2}{12} \] \[ \mu_3 \text{(corrected)} \;=\; \mu_3 \] \[ \mu_4 \text{(corrected)} \;=\; \mu_4 - \dfrac{h^2}{2}\,\mu_2 + \dfrac{7h^4}{240} \]

Odd-order central moments need no correction.

Conditions for Applying Sheppard's Correction

  1. The frequency distribution must be continuous.
  2. Frequencies should taper off to zero at both tails.
  3. The class intervals must be of equal width.
  4. The total frequency \(N\) should be large.
EXAMPLE 1

For a grouped distribution, \(\mu_2 = 25.5\) and \(h = 5\).

Corrected \(\mu_2 = 25.5 - 25/12 = 25.5 - 2.083 = \mathbf{23.417}\).

EXAMPLE 2

For a grouped distribution \(\mu_2 = 16,\; \mu_4 = 800,\; h = 4\).

Correction to \(\mu_4\): \(800 - (16/2)(16) + 7(256)/240 = 800 - 128 + 7.467 = \mathbf{679.467}\).

6. Skewness

DEFINITION

Skewness is the lack of symmetry in a distribution. A symmetric distribution has equal tails on both sides of the mean; an asymmetric one is "skewed" to the left or right.

Types of Skewness

Negative Skew Mode Median Mean
Mean < Median < Mode (tail on the left)
Symmetric Mean = Median = Mode
Skewness = 0 (equal tails)
Positive Skew Mode Median Mean
Mode < Median < Mean (tail on the right)

6.1 Karl Pearson's Coefficient of Skewness

FORMULA \[ S_k \;=\; \dfrac{\text{Mean} - \text{Mode}}{\sigma} \]

If mode is ill-defined, use the empirical relation:

\[ S_k \;=\; \dfrac{3(\text{Mean} - \text{Median})}{\sigma} \]

Range of \(S_k\): theoretically \(\pm 3\); practically lies between \(\pm 1\).

EXAMPLE 1

Mean = 50, Mode = 45, SD = 8. \(S_k = (50 - 45)/8 = 0.625\) (positively skewed).

EXAMPLE 2

Mean = 25, Median = 28, SD = 5. \(S_k = 3(25 - 28)/5 = -1.8\) (strongly negatively skewed — use with caution since exceeds ±1).

6.2 Bowley's Coefficient of Skewness (Quartile-based)

FORMULA \[ S_B \;=\; \dfrac{Q_3 + Q_1 - 2 Q_2}{Q_3 - Q_1} \]

Range: \(-1 \le S_B \le 1\). Used when extreme values exist or distribution is open-ended.

EXAMPLE 1

\(Q_1 = 20,\; Q_2 = 30,\; Q_3 = 50\).
\(S_B = (50 + 20 - 60)/(50 - 20) = 10/30 = 0.333\) → moderately right-skewed.

EXAMPLE 2

\(Q_1 = 25,\; Q_2 = 40,\; Q_3 = 50\).
\(S_B = (50 + 25 - 80)/(50 - 25) = -5/25 = -0.20\) → slightly left-skewed.

6.3 Coefficient based on Moments (β₁, γ₁)

FORMULAE \[ \beta_1 \;=\; \dfrac{\mu_3^2}{\mu_2^3}, \qquad \gamma_1 \;=\; \sqrt{\beta_1} \;=\; \dfrac{\mu_3}{\mu_2^{3/2}} \]
EXAMPLE 1

From Section 4 Example 1: \(\mu_2 = 8,\; \mu_3 = 0\).
\(\beta_1 = 0,\; \gamma_1 = 0\) → symmetric.

EXAMPLE 2

If \(\mu_2 = 16\) and \(\mu_3 = -64\), \(\beta_1 = (-64)^2/16^3 = 4096/4096 = 1\). \(\gamma_1 = -64/16^{1.5} = -64/64 = -1\) → strongly negatively skewed.

7. Kurtosis

DEFINITION

Kurtosis measures the peakedness or flatness of a frequency distribution relative to the normal curve.

FORMULAE \[ \beta_2 \;=\; \dfrac{\mu_4}{\mu_2^2}, \qquad \gamma_2 \;=\; \beta_2 - 3 \]

Visual Mnemonic

Typeβ₂ShapeMemory
Leptokurtic> 3tall & thin"Lepto" = leaping (high jump)
Mesokurtic= 3normal bell"Meso" = middle
Platykurtic< 3flat & wide"Platy" = plate (flat)
Leptokurtic (β₂ > 3) Mesokurtic (β₂ = 3) Platykurtic (β₂ < 3) Three Kurtosis Shapes
Fig 5.2 — Lepto (peaked), Meso (normal), Platy (flat) shapes
EXAMPLE 1

From Section 4 Example 1: \(\mu_2 = 8,\;\mu_4 = 108.8\).
\(\beta_2 = 108.8 / 64 = 1.7\) → Platykurtic (flatter than normal). \(\gamma_2 = -1.3\).

EXAMPLE 2

If \(\mu_2 = 4\) and \(\mu_4 = 90\), \(\beta_2 = 90/16 = 5.625\) → Leptokurtic (sharper peak, heavier tails). \(\gamma_2 = 2.625\).

8. Combined Use of Skewness & Kurtosis

For a complete description of a distribution we report:

  1. Mean (centre)
  2. Variance / SD (spread)
  3. \(\beta_1\) or \(\gamma_1\) (asymmetry)
  4. \(\beta_2\) or \(\gamma_2\) (peakedness)
Test of Normality: a distribution is approximately normal if \(\gamma_1 \approx 0\) and \(\beta_2 \approx 3\) (\(\gamma_2 \approx 0\)).

Key Take-aways from Unit 5

Extra Practical Problems

PRACTICE

Additional worked problems with step-by-step procedures to support self-study, matching this unit's topics.

STEP-BY-STEP PROCEDURE
  1. Raw moments about an arbitrary value \(A\): \(\mu_r' = \dfrac{1}{N}\sum f_i (X_i - A)^r\) for \(r = 1, 2, 3, 4\).
  2. Central moments (about the mean) from the raw moments: \(\mu_2 = \mu_2' - \mu_1'^2\); \(\mu_3 = \mu_3' - 3\mu_2'\mu_1' + 2\mu_1'^3\); \(\mu_4 = \mu_4' - 4\mu_3'\mu_1' + 6\mu_2'\mu_1'^2 - 3\mu_1'^4\). (Mean \(= A + \mu_1'\).)
  3. Skewness: Karl Pearson \(S_k = \dfrac{\bar X - \text{Mode}}{\sigma}\) or \(\dfrac{3(\bar X - \text{Median})}{\sigma}\); Bowley \(S_b = \dfrac{Q_3 + Q_1 - 2Q_2}{Q_3 - Q_1}\); moment coefficient \(\beta_1 = \dfrac{\mu_3^2}{\mu_2^3}\), \(\gamma_1 = \sqrt{\beta_1}\).
  4. Kurtosis: \(\beta_2 = \dfrac{\mu_4}{\mu_2^2}\), \(\gamma_2 = \beta_2 - 3\). \(\beta_2 = 3\) mesokurtic, \(> 3\) leptokurtic, \(< 3\) platykurtic.
  5. Sheppard's corrections (grouped data, width \(h\)): \(\mu_2(\text{corr}) = \mu_2 - \frac{h^2}{12}\), \(\mu_4(\text{corr}) = \mu_4 - \frac{h^2}{2}\mu_2 + \frac{7h^4}{240}\).

Problem 1 — Moments, Skewness & Kurtosis (ungrouped)

DATA

Daily earnings (₹) of 7 workers: 126, 121, 124, 122, 125, 124, 123. Compute the first four raw moments (about \(A=123\)) and central moments, with coefficients of skewness and kurtosis.

Raw moments about \(A=123\) (\(\sum(x-A)=4, \sum(x-A)^2=20, \sum(x-A)^3=28, \sum(x-A)^4=116\)):

\(\mu_1' = \tfrac{4}{7} = 0.57,\quad \mu_2' = \tfrac{20}{7} = 2.86,\quad \mu_3' = \tfrac{28}{7} = 4,\quad \mu_4' = \tfrac{116}{7} = 16.57.\)

Mean \(= 865/7 = 123.57\). Central moments: \(\mu_1 = 0,\ \mu_2 = 2.53,\ \mu_3 = -0.52,\ \mu_4 = 12.70\). Median \(= 124\), Mode \(= 124\), \(\sigma = 1.59\).

Karl Pearson's skewness: based on median \(= \dfrac{3(\bar x - M_d)}{\sigma} = \dfrac{3(123.57-124)}{1.59} = -0.81\); based on mode \(= \dfrac{\bar x - M_o}{\sigma} = -0.27\).

Bowley's skewness (\(Q_1=122, Q_2=124, Q_3=125\)): \(S_b = \dfrac{Q_3+Q_1-2Q_2}{Q_3-Q_1} = \dfrac{125+122-248}{3} = -0.33\).

Kurtosis: \(\beta_2 = \dfrac{\mu_4}{\mu_2^2} = \dfrac{12.70}{2.53^2} = 1.98\); \(\gamma_2 = \beta_2 - 3 = -1.02\). The curve is negatively skewed and platykurtic.

Problem 2 — Moments, Skewness & Kurtosis (grouped)

DATA

Milk yield (kg): classes 4–6, 6–8, …, 16–18 with cows 8, 10, 27, 38, 25, 20, 7 (\(N=135\)); moments computed about \(A=11\).

Mean \(= 11.22\), Median \(= 11.18\), Mode \(= 10.92\), \(\sigma = 3.01\).

Karl Pearson's skewness: based on median \(= \dfrac{3(11.22-11.18)}{3.01} = 0.04\); based on mode \(= \dfrac{11.22-10.92}{3.01} = 0.10\).

Bowley's skewness (\(Q_1=9.17, Q_2=11.18, Q_3=13.46\)): \(S_b = \dfrac{13.46+9.17-2(11.18)}{13.46-9.17} = 0.06\).

Kurtosis: \(\beta_2 = \dfrac{\mu_4}{\mu_2^2} = \dfrac{207.05}{9.05^2} = 2.53\); \(\gamma_2 = -0.47\).

Reading the three skewness measures together. Pearson's and Bowley's coefficients are small and positive, but the moment coefficient is small and negative: from the same moments, \(\mu_3 = -3.02\) and \(\gamma_1 = \mu_3/\mu_2^{3/2} = -0.11\). When the measures disagree in sign and all are this close to zero, the honest conclusion is that the curve is very nearly symmetric and platykurtic.

Problem 3 — Mean & Variance from Moments about an Arbitrary Value

DATA

The first three moments about the value 2 are \(\mu_1'=1,\ \mu_2'=16,\ \mu_3'=-40\).

Mean \(= A + \mu_1' = 2 + 1 = 3\).

Variance \(= \mu_2 = \mu_2' - (\mu_1')^2 = 16 - 1 = 15\).

Unsolved Exercises

PRACTICE
  1. Distribution (marks 0–5…25–30, students 5, 7, 10, 16, 4, 4) — find both skewness coefficients. (Ans: Karl Pearson mode-based −0.31, Bowley −0.22)
  2. Plant height 30–35…65–70, plants 5, 14, 16, 25, 14, 12, 8, 6 — first four raw & central moments and \(\gamma_2\). (Ans: \(\mu_2 = 84.93,\ \mu_4 = 16890.14,\ \gamma_2 = -0.66\) — platykurtic)