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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.
i dont know how to do probobility iam so bad at it
The next thing that we must acknowledge is that all of the properties for exponents . This includes the more general rational exponent that we haven't looked at yet. Now the pr
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area and perimetre of semi circle
which fractions is equivalent to 5/ 6 a.20/24 b.9/10 c.8/18 d.10/15
t=w,w 2 L.H.S (w+w 2 ) + (w 2 + w) 2 ........ 1 + 1 ..... But every third term is of the form: (w 3n +w 3n ) 2 =22 There are nine such terms. Their sum is 36. The rema
Find the number of zeros of the polynomial from the graph given. (Ans:1)
One of the well-known class of models that involve a simple difference equation are models of mean reversion. These models typically take the form yt+1 - yt = -a(yt - μ)where 0
give some examples
Consider the wave equation utt - uxx = 0 with u(x, 0) = f(x) = 1 if-1 ut(x, 0) = ?(x) =1 if-1 Sketch snapshots of the solution u(x, t) at t = 0, 1, 2 with justification (Hint: Sket
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