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QQ plots

E

Edwin

Member
Is it necessay to go into depth about what a specific QQ plot tells us, for example the starting point is to reject the hypothesis of normality based on ANY shape that isn't a straight line.

But are we required to be able to know which QQ plot represents which kind of skewness and the thinkness of tail?
 
Hi, perhaps a past exam question might help show the level of detail required:

April 2011 question asked:

3 A model has been developed for a financial time series.
(i) Describe the construction of a QQ plot to judge the goodness of fit of the model. [3]
(ii) Explain how to interpret a QQ plot. [3]

The interpretation in (ii) required some high-level description of what to look for (ie a straight line vs “S”-shaped or arched, indicating that one of the distributions has a greater degree of skewness, or that one of the distributions has a higher degree of kurtosis)
 
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