What measure of distribution relates to extreme events, such as a stock market crash?
A) asymmetric
B) kurtosis
C) negatively skewed
D) skewness

Question

Quizplus · Accepted Answer

Kurtosis is a measure of the distribution that relates to extreme events or outliers. A high kurtosis indicates a more peaked or tightly clustered distribution, which suggests the presence of more extreme values. In the case of a stock market crash, a high kurtosis would indicate a higher likelihood of extreme losses. The other options (asymmetric, negatively skewed, and skewness) all relate to the shape and symmetry of the distribution, but do not necessarily indicate the presence of extreme events.

What Measure of Distribution Relates to Extreme Events, Such as a Stock