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The goal of this research is to develop Animated Pedagogical Agents (APA) that can convey clearly perceivable emotions through speech, facial expressions and body gestures. In particular, the two studies reported in the paper investigated the extent to which modifications to the range of movement of 3 beat gestures, e.g., both arms synchronous outward gesture, both arms synchronous forward gesture, and upper body lean, and the agent‘s gender have significant effects on viewer’s perception of the agent’s emotion in terms of valence and arousal. For each gesture the range of movement was varied at 2 discrete levels. The stimuli of the studies were two sets of 12-s animation clips generated using fractional factorial designs; in each clip an animated agent who speaks and gestures, gives a lecture segment on binomial probability. 50% of the clips featured a female agent and 50% of the clips featured a male agent. In the first study, which used a within-subject design and metric conjoint analysis, 120 subjects were asked to watch 8 stimuli clips and rank them according to perceived valence and arousal (from highest to lowest). In the second study, which used a between-subject design, 300 participants were assigned to two groups of 150 subjects each. One group watched 8 clips featuring the male agent and one group watched 8 clips featuring the female agent. Each participant was asked to rate perceived valence and arousal for each clip using a 7-point Likert scale. Results from the two studies suggest that the more open and forward the gestures the agent makes, the higher the perceived valence and arousal. Surprisingly, agents who lean their body forward more are not perceived as having higher arousal and valence. Findings also show that female agents’ emotions are perceived as having higher arousal and more positive valence that male agents’ emotions.