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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.
In a right triangle ABC, right angled at C, P and Q are points of the sides CA and CB respectively, which divide these sides in the ratio 2: 1. Prove that 9AQ 2 = 9AC 2 +4BC 2
In an equilateral triangle 3 coins of radius 1cm each are kept along such that they touch each other and also the side of the triangle. Determine the side and area of the triangle.
who discovered unitary method??
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a data set has a mean of 3, a median of 4, and a mode of 5.which number must be in the data set-3,4,5?
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log6+log-4
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