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Measurement of Skewness: Karl Pearson & Bowley Methods | BBA Notes

Study material and explanations for Unit 4

Measurement of Skewness: Karl Pearson & Bowley Methods

1. Absolute vs. Relative Measures of Skewness

To quantify the degree of tilt in a distribution, statisticians calculate both absolute and relative measures:

Absolute vs. Relative Skewness Measures
Absolute Measures (In Original Units)
1. Pearson's Absolute Skewness: Sk = Mean - Mode
2. Bowley's Absolute Skewness: Sk = (Q3 - M) - (M - Q1) = Q3 + Q1 - 2M
(Cannot be used to compare two series with different units of measurement)
Relative Measures (Pure Dimensionless Ratios)
1. Karl Pearson's Coefficient of Skewness (Sk_p)
2. Bowley's Quartile Coefficient of Skewness (Sk_b)
3. Kelley's Percentile Measure (Sk_k)
(Ideal for comparing different companies, products, or countries)

2. Karl Pearson’s Coefficient of Skewness (Sk_p)

Formulated by the father of modern mathematical statistics, Karl Pearson, this coefficient scales the distance between the Mean and Mode by the Standard Deviation:

Karl Pearson's Skewness Formulas
Formula 1: When Mode Is Well-Defined
Sk_p = (Mean - Mode) ÷ σ
Used whenever Mode can be clearly determined by inspection or grouping.
Formula 2: When Mode Is Ill-Defined
Sk_p = [ 3 × (Mean - Median) ] ÷ σ
Uses the empirical relation (Mode = 3 Median - 2 Mean). Most common in university exams!

Properties & Interpretation of Pearson’s Sk_p:

  • Limits: Theoretically lies between -3 and +3 (in practice, rarely exceeds -1 to +1).
  • If Sk_p = 0: The distribution is perfectly symmetrical.
  • If Sk_p > 0 (Positive): The distribution is positively skewed (tail stretches to the right).
  • If Sk_p < 0 (Negative): The distribution is negatively skewed (tail stretches to the left).

Solved Exam Example (Pearson’s Method):

Problem: In an exam, the Mean marks of students are 65, Median is 62, and Standard Deviation is 12. Calculate Karl Pearson’s coefficient of skewness.

  • Solution:
    Since Mode is not given, we use Formula 2:
    Sk_p = [ 3 × (Mean - Median) ] ÷ σ
    Sk_p = [ 3 × (65 - 62) ] ÷ 12
    Sk_p = [ 3 × 3 ] ÷ 12 = 9 ÷ 12 = +0.75
  • Conclusion: The data is moderately positively skewed (+0.75).

3. Bowley’s Quartile Coefficient of Skewness (Sk_b)

Formulated by Arthur Bowley, this measure is based entirely on the Quartiles (Q1, Median, and Q3).

Bowley's Quartile Formula
Master Formula
Sk_b = (Q3 + Q1 - 2 × Median) ÷ (Q3 - Q1)
Numerator = Absolute Skewness | Denominator = Interquartile Range

Why Is Bowley’s Method Unique?

  1. Works with Open-Ended Classes: If a distribution has open ends (e.g., “Below ₹1,000” or “Above ₹10,000”), the Mean and Standard Deviation cannot be calculated. But Quartiles and Median depend only on positions! Therefore, Bowley’s method is the ONLY method that can measure skewness for open-ended tables.
  2. Strict Limits: Bowley’s coefficient strictly lies between -1 and +1 (-1 ≤ Sk_b ≤ +1).

Solved Exam Example (Bowley’s Method):

Problem: For a wage distribution, Lower Quartile Q1 = 30, Median M = 40, and Upper Quartile Q3 = 55. Calculate Bowley’s coefficient of skewness.

  • Solution:
    Numerator = Q3 + Q1 - 2(Median)
    Numerator = 55 + 30 - 2(40) = 85 - 80 = +5
    Denominator = Q3 - Q1 = 55 - 30 = 25
    Sk_b = 5 ÷ 25 = +0.20
  • Conclusion: The wage distribution is slightly positively skewed (+0.20).

4. Kelley’s Coefficient of Skewness (Sk_k)

Truman L. Kelley refined Bowley’s measure by utilizing Percentiles (10th and 90th percentiles) or Deciles (1st and 9th deciles) to cover 80% of observations instead of just 50%:

  • Formula Using Percentiles:
    Sk_k = (P90 + P10 - 2 × P50) ÷ (P90 - P10)
  • Formula Using Deciles:
    Sk_k = (D9 + D1 - 2 × D5) ÷ (D9 - D1)

5. Master Comparison Table for Exam Preparation

Parameter Karl Pearson’s Method (Sk_p) Bowley’s Method (Sk_b)
Foundation Mean, Mode / Median & Standard Deviation. Quartiles (Q1, Median, Q3).
Mathematical Sensitivity Highly sensitive to every single observation. Focuses on the middle 50% of the distribution.
Open-Ended Classes Cannot be used for open-ended tables. Ideal for open-ended tables.
Mathematical Limits Theoretically -3 to +3 (practically -1 to +1). Strictly bounded between -1 and +1.