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.
