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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.
advantages of vogel''s approximation method over north west corner method
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Question: Consider a digraph D on 5 nodes, named x0, x1,.., x4, such that its adjacency matrix contains 1's in all the elements above the diagonal A[0,0], A[1,1], A[2,2],.., e
lnx(1+x)
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Example of Fractional Equations: Example: Solve the fractional equation (3x +8)/x +5 =0 Solution: Multiply both sides of the equation by the LCD (x). (x) ((3x
25/5(2+3)
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