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

The price of gasoline is $1.349 cents per gallon, The price of gasoline is ...

The price of gasoline is $1.349 cents per gallon. If the price increases through three tenths of a cent, what will the price of gasoline be? Three tenths of a cent can be writt

Polynomials in two variables, Polynomials in two variables Let's take a...

Polynomials in two variables Let's take a look at polynomials in two variables.  Polynomials in two variables are algebraic expressions containing terms in the form ax n y m

Implement immutable data type rational for rational number, Implement an im...

Implement an immutable data type Rational for rational numbers that supports addition, subtraction, multiplication and division. public class Rational Ration

Math project , Topic 1: Statistical Studies Find two different news storie...

Topic 1: Statistical Studies Find two different news stories in a mainstream media source (CNN, FoxNews, Newsweek, etc.), that cite data from a recognized poling agency. Locate th

Vectors, A triangle has vertices A (-1, 3, 4) B (3, -1, 1) and C (5, 1, 1)....

A triangle has vertices A (-1, 3, 4) B (3, -1, 1) and C (5, 1, 1). The area of ABC is a) 30.1 b) 82.1 c) 9.1 d) 52.1

Add or subtract operations for complex numbers, performs the mentioned oper...

performs the mentioned operation and write the answers in standard form. ( -4 + 7 i ) + (5 -10 i ) Solution Actually there isn't much to do here other than add or subt

Math, could you help me get bater at math

could you help me get bater at math

Geometry, Determine the coordinates of the point equidistant from Salt Lake...

Determine the coordinates of the point equidistant from Salt Lake City and Helena

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