Skewedness versus kurtosis

Reference no: EM1392663

1. Critically discuss the difference between the "skewedness" of the distribution of a dataset and its "kurtosis"?

2. What is the expected value (EV) of an investment if there is a 20% chance of realizing a return of $20,000 or a 55% chance of realizing a return of $25,000, or there could be a loss of $15,000?

3. Which is the better purchase to make, a $12,000 Plotter that costs $250/year in supplies to operate but has a $2,000 salvage value, or a $9,250 plotter that costs $600 annually in supplies and has only a $500 salvage. Assume that the cost of money & risk is anticipated to be 5.5%, inflation is expected to be 2.5%, and both will last for 7-years.

Reference no: EM1392663

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