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

Theory of indices, In algebra knowing that 2 3 = 8 is not sufficient...

In algebra knowing that 2 3 = 8 is not sufficient. Equally important to know is what would be the result if quantities like 2 3 . 2 -4 . 2 6 or  3 7 / 3 2

Differential Equations, 1.Verify Liouville''s formula for y "-y" - y'' + y ...

1.Verify Liouville''s formula for y "-y" - y'' + y = 0 in (0, 1) ? 2.Find the normalized differential equation which has {x, xex} as its fundamental set. 3.6Find the general soluti

Need answer urgently, using a pair of compasses a ruler and a pencil. const...

using a pair of compasses a ruler and a pencil. construct a triangle CDE in which DE=10cm, DC+8cm and CDE= 45 degrees. construct CF perpendicular to DE such that F lies on DE using

Square numbers, determine the square of the following numbers ... a.8 b.13 ...

determine the square of the following numbers ... a.8 b.13 c.17 and d.80

Statistics, find the number of ways 17 employees can b chosen from 327

find the number of ways 17 employees can b chosen from 327

Erin is painting a bathroom what is the area to be painted, Erin is paintin...

Erin is painting a bathroom along with four walls each measuring 8 ft through 5.5 ft. Ignoring the doors or windows, what is the area to be painted? The area of the room is the

Method for simultaneous equations of two or more variables, Method In ...

Method In this method we eliminate either x or y, get the value of other variable and then substitute that value in either of the original equations to

Algebra 1, pls help me solve this step by step 6*11(7+3)/5-(6-4)

pls help me solve this step by step 6*11(7+3)/5-(6-4)

Complex number, a ,b,c are complex numbers such that a/1-b=b/1-c=c-1-a=k.fi...

a ,b,c are complex numbers such that a/1-b=b/1-c=c-1-a=k.find the value of k

How will the decimal point move when 245.398 is multiplied, How will the de...

How will the decimal point move when 245.398 is multiplied by 100? It is moved two places to the right. While multiplying by multiples of 10, the decimal point is moved to the

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