I often get confused with the terms skewness and kurtosis (who gave those terms!!) and in interpreting high/low skewness and high/low kurtosis.
Please share any tips/tricks to remember the concept and interpret them rightly. TY.
Skewness is derive from SKEW which is the exact definition of the word. there is no such thing as high or low skewness. it’s positive or negative. if negative ( the mean is skewed to the right ) then your distribution is much more dispersion on the left side of the mean ( you can tell yourself that mean is 0. if negative skewed then you have much more dispersion on negative numbers) . if positive you will have much more dispersion on the right side of the mean
Kurtosis. Well if you know that skewness is skewness, you know that kurtosis is the height of the peak at the mean. if kurtosis is highm then the peak is high. if it’s low, then the peak is low.
Remember: Kurt has a fat tail.
Kurtosis is about fat and thin tails, skew is about left and right twists.