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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.
Given f ( x ) = 3x - 2 determine f -1 ( x ) . Solution Now, already we know what the inverse to this function is as already we've done some work with it. Though, it
1/2 + 2/8 =
An aeroplane is flying at a specific height of 5 km, and at a velocity of 450 km/hr. A camera on the ground is pointed towards the plane, at an angle θ from the horizontal. As the
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If the p th , q th & r th term of an AP is x, y and z respectively, show that x(q-r) + y(r-p) + z(p-q) = 0 Ans: p th term ⇒ x = A + (p-1) D q th term ⇒ y = A + (
set theory
log x dx
(a) Find an example of groups G, H, K with K H and H G but K G. (b) A subgroup H of G is characteristic if σ(H) ⊆ H for every group automorphism σ of G. Show that eve
How would you solve this question? 4/5 = 8/x+2
i really ned help wiv quartiles plz help
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