Why the measure of skewness matters.

What is it about?

Critiques paper relating earnings and analyst forecast bias. Shows the third moment is not as good a measure of skewness as the min-max measure, which correctly captures a departure from symmetry in all cases.

Featured Image

Why is it important?

Since the third moment does not capture departures from symmetry in all cases, it is important to use an alternative, like the min-max measure of skewness.