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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.
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A boat tour company charges $11 for a harbour tour and averages 450 passengers on Saturdays. Over the past few months, the company has been experimenting with the price of a tour a
Q. a(b - c)x^2 + b(c - a)x + c(a - b) = 0 has equal roots then b = ? Ans: Condition that a quadratic equation ax² + bx + c = 0 has equal roots is: Its discriminant, b² - 4ac = 0 A
Definite integration It involve integration among specified limits, say a and b The integral is a definite integral whether the limits of integration are as: a and b
Tangent, Normal and Binormal Vectors In this part we want to look at an application of derivatives for vector functions. In fact, there are a couple of applications, but they
the number is 605176 the underline digit is 0
Correlation and Regression Correlation CORRELATION is an important statistical concept which refers to association or interrelationship among variables. The reasons of
kolushushi borrowed tsh 250000/- and paid135000/- as interest in 3 years. what rate of interest was paid
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Geometric Interpretation of the Cross Product There is as well a geometric interpretation of the cross product. Firstly we will let θ be the angle in between the two vectors a
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