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

Compute the derivative, Write an octave program that will take a set of poi...

Write an octave program that will take a set of points {x k , f k } representing a function and compute the derivative at the same points x k using 1. 2-point forward di erence

Indices, what are the advantages and disadvantages of both Laspeyres and Pa...

what are the advantages and disadvantages of both Laspeyres and Paasche index

Ratio and proportion, the sides of triangleare inthe ratio 2;3;4 if the per...

the sides of triangleare inthe ratio 2;3;4 if the perimeter is 72 cm. find its side.

Find the area enclosed between two concentric circles, Find the area enclos...

Find the area enclosed between two concentric circles of radii 3.5cm, 7cm. A third  concentric circle is drawn outside the 7cm circle so that the area enclosed between it and the 7

Numeration, which of these is between 5,945,089 and 5,956,108

which of these is between 5,945,089 and 5,956,108

Differential calculus, lim n tends to infintiy ( {x} + {2x} + {3x}..... +{n...

lim n tends to infintiy ( {x} + {2x} + {3x}..... +{nx}/ n2(to the square) )where {X} denotes the fractional part of x? Ans) all no.s are positive or 0. so limit is either positive

Introduction , what states and marketing tasks?

what states and marketing tasks?

Postage stamp problem, Explain Postage Stamp Problem solving tehcnique? Wha...

Explain Postage Stamp Problem solving tehcnique? What is Postage Stamp Problem?

Differntial equation, (3x+2)^2 d^2y/dx^2+3(3x+2)dy/dx-36y=3x^2+4x+1

(3x+2)^2 d^2y/dx^2+3(3x+2)dy/dx-36y=3x^2+4x+1

Hyperbolic paraboloid- three dimensional space, Hyperbolic Paraboloid- Thre...

Hyperbolic Paraboloid- Three Dimensional Space The equation which is given here is the equation of a hyperbolic paraboloid. x 2 / a 2 - y 2 / b 2 = z/c Here is a dia

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