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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.
Determine if the following sequences are monotonic and/or bounded. (a) {-n 2 } ∞ n=0 (b) {( -1) n+1 } ∞ n=1 (c) {2/n 2 } ∞ n=5 Solution {-n 2 } ∞ n=0
Now we have to start looking at more complicated exponents. In this section we are going to be evaluating rational exponents. i.e. exponents in the form
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find non linear relation between given data
If 7sin 2 ?+3cos 2 ? = 4, show that tan? = 1/√3 . Ans: If 7 Sin 2 ? + 3 Cos 2 ? = 4 S.T. Tan? 1/√3 7 Sin 2 ? + 3 Cos 2 ? = 4 (Sin 2 ? + Cos 2 ?)
darien agrees to sponsor her sister $8 plus $1 for every mile she walks.Write an expression to show her total money
6987+746-212*7665
Heaviside or step function limit : Calculates the value of the following limit. Solution This function is frequently called either the Heaviside or step function. We
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