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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.
Marks obtained by 70 students are given below: M arks 20 70 50 60 75 90 40 No.
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
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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' +
15(4*4*4*4*+5*5*5)+(13*13*13+3*3*3)
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 surface area of a sphere with r = 4". Be sure to include units in your answer. Solution: V
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
Are the two angles of a rectangles congruent ? why ?
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