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

Find the median, Marks obtained by 70 students are given below: ...

Marks obtained by 70 students are given below: M arks 20 70 50 60 75 90 40 No.

A single student is selected at random, The scores of students taking the A...

The scores of students taking the ACT college entrance examination are normally distributed with a mean µ = 20.1 and a standard deviation σ = 5.8. a)    A single student is sele

Calculus three, i would like answers to these questions i will give you as ...

i would like answers to these questions i will give you as soon as possible

Sum, i want to trick to know how can i fastest calculate more than compute...

i want to trick to know how can i fastest calculate more than computer

Initial value problem, An IVP or Initial Value Problem is a differential eq...

An IVP or Initial Value Problem is a differential equation with an appropriate number of initial conditions. Illustration 3 : The subsequent is an IVP. 4x 2 y'' + 12y' +

Pemdas, 15(4*4*4*4*+5*5*5)+(13*13*13+3*3*3)

15(4*4*4*4*+5*5*5)+(13*13*13+3*3*3)

A graph with a positive slope, A graph with a positive slope shows that the...

A graph with a positive slope shows that the variables depicted on the axes goes in the similar directions.

Calculate the volume and surface area of a sphere, Calculate the volume and...

Calculate the volume and surface area of a sphere: Calculate the volume and surface area of a sphere with r = 4".  Be sure to include units in your answer. Solution: V

Do all our activities involve mathematics?, Do All Our Activities Involve M...

Do All Our Activities Involve Mathematics? :  The answer to this is 'yes' and 'no'. For those who look for mathematics and know where to look for it, it is 'yes'. For those who do

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