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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.
Q. Definition of Logarithms? Ans. A logarithm to the base a of a number x is the power to which a is raised to get x. In equation format: If x = a y , then log a x
Test of homogeneity This is concerned along with the proposition that several populations are homogenous along with respect to some characteristic of interest for example; one
Ut=Uxx+A exp(-bx) u(x,0)=A/b^2(1-exp(-bx)) u(0,t)=0 u(1,t)=-A/b^2 exp(-b)
a figure is made of a rectangle and an isosceles right triangle. the rectangle has sides of 6 in. and 3 in. one of the short sides of the rectangle is also one of the legs of the r
Perpendicular to the line given by 10 y + 3x= -2 For this part we desire the line to be perpendicular to 10 y + 3x= -2 & so we know we can determine the new slope as follows,
In this section we will be looking exclusively at linear second order differential equations. The most common linear second order differential equation is in the type. p (t ) y
#question.Find the slope of the line that passes through (7, 3) and (9, 6). Simplify your answer and write it as a proper fraction, improper fraction, or integer. .
what are these all about and could i have some examples of them please
A rescue and ?re squad places a 15 ft ladder against a burning building. If the ladder is 9 ft from the base of the building, how far up the building will the ladder reach? a. 8
If ABCD isaa square of side 6 cm find area of shaded region
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