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

How i get orders, how i become an assignment helper?n how i get order from ...

how i become an assignment helper?n how i get order from students?what should i do

Approximating solutions to equations newtons method, Approximating solution...

Approximating solutions to equations : In this section we will look at a method for approximating solutions to equations. We all know that equations have to be solved on occasion

John and charlie have a whole of 80 dollars he has x dollar, John and Charl...

John and Charlie have a whole of 80 dollars. John has x dollars. How much money does Charlie have? This problem translates to the expression 42 + (11 - 9) ÷ 2. Using order of o

Systems of equations revisited, Systems of Equations Revisited We requ...

Systems of Equations Revisited We require doing a quick revisit of systems of equations. Let's establish with a general system of equations. a 11 x 1 + a 12 x 2 +......

Divison, what is 24 diveded by 3

what is 24 diveded by 3

Find the perimeter and the area of the shaded portion, The given figure con...

The given figure consists of four small semicircles and two big semicircles.  If the smaller semicircles are equal in radii and the bigger semicircles are also equal in radii, find

What is the surface area of a ball with a diameter of 6 inch, The formula f...

The formula for the surface area of a sphere is 4πr 2 . What is the surface area of a ball with a diameter of 6 inches? Round to the nearest inch. (π = 3.14) If the diameter  o

Example of multiplication, Example 1: Multiply 432 by 8. Solution: ...

Example 1: Multiply 432 by 8. Solution:        432 ×        8 --------------       3,456 In multiplying the multiplier in the units column to the multiplica

Trigonometry, trigonometric ratios of sum and difference of two angles

trigonometric ratios of sum and difference of two angles

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