Lognormal distribution, Mathematics

Assignment Help:

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. 


Related Discussions:- Lognormal distribution

Word problems, A patient will receive hemodialysis for 2.5 hours. The amoun...

A patient will receive hemodialysis for 2.5 hours. The amount of fluid removed per hour is 1.4 liters. The total amount removed in liters, will be

Multiply, 37x7= multiply answer it.

37x7= multiply answer it.

Area of a circle, There's a nice way to show why the expresion for the area...

There's a nice way to show why the expresion for the area of a circle of radius R is: Pi * R 2 . It has an comman relationship with the experation for the circumference of a

Word problem, tom has 150 feet of fencing to enclose a rectangular garden. ...

tom has 150 feet of fencing to enclose a rectangular garden. if the length is to be 5 feet less than three the width, find the area of the garden

What is angle pairs in parallel lines, What is Angle Pairs in Parallel Line...

What is Angle Pairs in Parallel Lines ? Next, we introduce several angle pairs formed by transversals which are very important in our study of geometry. Alternate interior an

Divide by 1-digit numbers, which experession can be used to check the quoti...

which experession can be used to check the quotient 646 divided by 3

Minimizes the sum of the two distance, The value of y that minimizes the su...

The value of y that minimizes the sum of the two distances from (3,5) to (1,y) and from (1,y) to (4,9) can be written as a/b where a and b are coprime positive integers. Find a+b.

Show that the height of the opposite house, From a window x meters hi...

From a window x meters high above the ground in a street, the angles of elevation and depression of the top and the foot of the other house on the opposite side of the street  are

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd