Skew, Probability & Linear Coding

Formula for positive skew

Formula for positive skew

mode<median<mean

Formula for no skew

mode=median=mean

Formula for negative skew

mode>median>mean

How is the mean affected by linear coding?

Adding: old mean + x

Multiplying: old mean * x

How is the standard deviation affected by linear coding?

Adding: sd is unchanged

Multiplying: old sd * x

What is the addition rule?

Tests for ME events

P (A or B) = P(A) + P(B) - P(A and B)

What is the test for independence?

P(A and B) = P(A) * P(B)

What is the formula for conditional probability?

P(A given B) = P(A and B)/P(B)

What is the formula for V(X) in a rectangular distribution?

1/12 * (b-a)²