Create a skew normal distribution in excel

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Reference no: EM131086902

Create a Skew Normal Distribution in Excel

Use the density method approach to create a skew normal distribution in Excel.

Your model will have one input parameter a

Choose your discretized x-space carefully (start with -15 to 15 in increments of 0.10, as in Figure 3-45).

Compare the theoretical mean, variance, skew, and kurtosis given in (3.70) to the empirical ones using the density approach formulas analogous to (3.64)-(3.66). For instance,

(If the match is poor, it could be due to a poor choice of the discretized x-space.)

Graph the result, as in Figure 3-46.

Reference no: EM131086902

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