Positive Skewness Meaning. And the median is less than the mean. The positive skewness of a distribution indicates that an investor may expect frequent small losses and a few large gains from the investment.
The skewness enables traders and investors a way to quantify where the majority of outcomes fell for returns risks trades and stocks in the past inside a probability curve. A probability distribution does not need to be a perfect bell shaped curve. A similar argument explains why data skewed to the left has negative skewness.
In this case we can use also the term right skewed or right tailed.
The distribution is positively skewed when most of the frequency of distribution lies on the right side of distribution has a longer and fatter right tail. The skewness value can be positive zero negative or undefined. The distribution is positively skewed when most of the frequency of distribution lies on the right side of distribution has a longer and fatter right tail. If we move to the right along the x axis we go from 0 to 20 to 40 points and so on.
