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
![](https://test.transtutors.com/qimg/7e2a7175-6e55-48ee-bd0d-3b7c0bb70287.png)
- Choose your discretized x-space carefully (start with -15 to 15 in increments of 0.10, as in Figure 3-45).
![](https://test.transtutors.com/qimg/c16d7185-bab9-44c9-a553-9ea19adc6721.png)
- 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,
![](https://test.transtutors.com/qimg/f52cbc77-ca30-4dc4-acc3-b6cfbe9d698b.png)
(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.
![](https://test.transtutors.com/qimg/7eb1b040-991e-4b3b-b5ab-289668d49d40.png)