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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.
In an equilateral triangle 3 coins of radius 1cm each are kept along such that they touch each other and also the side of the triangle. Determine the side and area of the triangle.
The Fisher's index The index of Fisher acts as a compromise between Paasche' index and Laspeyre's index. This is calculated as a geometric mean of the two indexes.
Temperature: On one day in Fairfield, Montana the temperature dropped 80 degree fahrenheit from noon to midnight. If the temperature at midnight was -21 degree fahrenheit, write an
#question.x2-y2-4x-2y+3.
need help to write Marketing research reprot about IBM company using spss (statistical program) to analys the given data about the company and write the report according to given i
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why modi method is used in operation research
What is the greatest common factor of 24 and 64? List the factors of 24 and 64. The largest factor that they have in common is the greatest common factor. Factors of 24: 1,
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
cos(x)y''+sin(x)y=2cos^3(x)sin(x)-1
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