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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.
Average Function Value The first application of integrals which we'll see is the average value of a function. The given fact tells us how to calculate this. Average Functi
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2.46825141458*1456814314.446825558556
From an aero plane vertically above a straight horizontal road, the angles of depression of two consecutive milestones on opposite sides of the aero plane are observed
why minimum three coplanar vectors are required to give zero resultant and not two?
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