This question is directed towards the ones who have sat for level 1. When I did example 17 in reading 7, i first used the approximate equation of equation 7-18. The answer I calculated based on that equation was -.99. Than when I used the full equation (7-18), I got .05 as the excess kurtosis which is the correct answer. -.99 and .05 are pretty different even though they are somewhat close to 0. My question for you guys is on the exam, are the answers going to be this similar to each other. Basically will I be Ok remembered the approximate equation, or am i forced to memorize the full equation? Thank you in advance!
i don’t ever remember learning a kurtosis equation… but answers should be close. that discrepancy between -.99 and .05 seems large to me
I’m an LII candidate and I say don’t worry about memorizing the equation.
Thanks for your input guys.
I believe all you need to know is a normal distribution has kurtosis = 3
Ya that equation is too ridiculous. There is no way ud have to know it.
Takes 1 second in Excel. Takes, what, 30 * (1.5)^ number of variables seconds to do by hand ?
Just know the concept of Kurtosis and be able to interpret the information given.
i think ellejay is right , all u need to know is for normal dist. k=3