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The Lognormal Distribution
If ln(X) is a normally distributed random variable, then X is said to be a lognormal variable.
If P1, P2, P3, ... are the prices of a scrip in periods 1, 2, 3, ..., some applications in finance require ln (P2/P1), ln (P3/P2),... to be normally distributed, that is, continuously compounded returns are required to be normal. This property is described as “Stock Prices are Lognormal”.
REMARK
The previous random variables arose out of natural experiments. The following distributions are derived distributions. That is, it is a function of other distributions. We require the following two distributions in Testing of Hypothesis. and our presentation will be restricted by our requirements.
Define A*B where: A = | 3 -3 6 | B = | 6 1 | | 0 4 2 | | 0 -5 |
to plot (5,-4), start at (0,0) and move 5 units left and 4 units down
3x2+5x-2
verify 4(sin^4 30^0+cos60^0 )-3(cos^2 ?45?^0-sin^2 90^0 )=2
7 is what percent of 105?.
-9+f ?-1 ?? (a-1)=-12 f(-3)=2
Euler Equations - Series Solutions to Differential Equations In this section we require to look for solutions to, ax 2 y′′ + bxy′ + cy = 0 around x0 = 0. These ki
Kenny used a micrometer to measure the thickness of a piece of construction paper. The paper measured halfway among 0.24 millimeters and 0.25 millimeters. What is the thickness of
(a) Find the curve on the surface z=x 3/2 joining the points(x,y,z)=(0,0,0) and (1,1,1) has the shortest arc lenght? (b) Use a computer to produce a plot showing the surface an
intigration techiniqes
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