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

Determine the critical points, Assume that the amount of money in a bank ac...

Assume that the amount of money in a bank account after t years is specified by, Find out the minimum & maximum amount of money in the account throughout the first 10 years

G .E matrix, using the g.e matrix, how can you turn an unattractive product...

using the g.e matrix, how can you turn an unattractive product to be attractive

Trigomometrical, ABCD is a rhombus. the sides of the rhombus are 8cm long ....

ABCD is a rhombus. the sides of the rhombus are 8cm long .one of its diagonals is 12cm .find the angels of the rhombus

To find out the perimeter of a triangular give formula, To find out the per...

To find out the perimeter of a triangular region, what formula would you use? The perimeter of a triangle is length of surface a plus length of side b plus length of side c.

Four is added to the quantity two minus the sum of negative, Four is added ...

Four is added to the quantity two minus the sum of negative seven and six. This answer is then multiplied through three. What is the result? This problem translates to the expr

Example of set theory, Suggest me the solution: Consider the given unive...

Suggest me the solution: Consider the given universal set T and its subjects C, D and E T = {0, 2, 4, 6, 8, 10, 12} C = {4, 8,} D = {10, 2, 0} E = {0} Find out

Quadratic equation, If roots of (x-p)(x-q) = c are a and b what will be th...

If roots of (x-p)(x-q) = c are a and b what will be the roots of (x-a)(x-b) = -c please explain. Solution)  (x-p)(x-q)=c x2-(p+q)x-c=0 hence,   a+b=p+q  and    a.b=pq-c

Word problems, A baseball card was worth $5.00 in 1940. It doubled in value...

A baseball card was worth $5.00 in 1940. It doubled in value every decade. How much was it worth in 2000?

Math, a business is owned by three people.the first owns 1/12 of the busine...

a business is owned by three people.the first owns 1/12 of the business and the second owns 1/6 of the business. what fractional part of the business is owned by the third person

Math problem, integral from 0 to pi of dx/(a+b*cos(x)

integral from 0 to pi of dx/(a+b*cos(x)

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