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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. What is Common Triangles? Ans. Some triangles appear more commonly than others. You will come across two triangles repeatedly as you learn more about trigonometry. T
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Explain Coin Problem? How to resolve Coin Problem? Explain brief...
Apply the concept of partial fraction and add the corresponding terms. The terms will get cut automatically leaving the first and last term
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the function g is defined as g:x 7-4x find the number k such that kf(-8)=f- 3/2
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application
One day it snowed 3 and 3/8 inches in Altoona and 3.45 inches in Bethlehem. Which city received less snow that day.
the value of y for which x=-1.5
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