More often than not when we are presented with statistics we

More often than not, when we are presented with statistics we are given only a measure of central tendency (such as a mean). However, lots of useful information can be gleaned about a dataset if we examine the variance, skew, and the kurtosis of the data as well. Choose a statistic that recently came across your desk where you were just given a mean. If you can\'t think of one, come up with an example you might encounter in your life. How would knowing the variance, the skew, and/or the kurtosis of the data give you a better idea of the data? What could you do with that information?

Solution

Number of cars in service of the top 20 car rental companies. Generally we find the how many cars averagly a rental car company has by taking the avearge of 20 companies. But it may be possible that some companies has very high number of cars in comparison to others, In that case distribution of number of cars will be right skewed and probably have outliers. That will make the mean unusally high. In that case skewness and kurtosis and variance gives a good idea of data.

Skewness gives the mesaure how much distribution skewed. If it is negative distribution is skewed to left, if it positive distribution skewed to right. If it is zero distribution, distribution is symmetric.

Kurtosis gives the measure of flatness of the distribution.

And variance shows the variability in the data.