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Positive Skewness


Positive skewness has two applications in the field of asset management: 1. Probability Distributions for Asset Service Lives Asymmetry (skewness) in a probability distribution to the left (positive) of the mean.
Negative aging: The longer the component has been in service, the less likely it is to fail. Here, the hazard function decreases for larger values of t. This makes sense when individual components vary in quality: poorly made components usually fail early, so anything that has been in service for a long time is likely to be particularly robust and will usually survive even longer.

Fig. Comparison of positive skewness ("blue" curve) and negative skewness ("green" curve) on a probability distribution. Fig. Generic leftmodal curve (with positive skewness). Fig. Example of the probability distribution along a leftmodal curve (positive skewness). 

2. Project Distributions in a Planning Horizon A frontend loading on a tactical plan or a strategic plan or a funding model represented by a moving average graph will have negative skewness.
 2. Project Distributions in a Planning Horizon Fig. A strategic planning horizon with positive skewness resulting from frontend loading of forecast capital expenses. Fig. Frontend loading on a funding model, which results in positive skewness.  
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Fig. I. Care is trying to connect the dots to reveal the patterns in the data that underpin his assets. 
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