standardizing a random variable if
Standardizing a Random Variable
If X is a random variable with E(X) = m and V(X) = s2, then Y = (X – m)/ s is a random variable with mean 0 and standard deviation 1.
The standardization (or normalization) of X results in Y.
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random variable a variable which assumes different numerical values as a result of random experiments or random occurrences is known as a random
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standardizing a random variable if x is a random variable with ex m and vx s2 then y x ndash m s is a random variable with mean 0
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the lognormal distributionif lnx is a normally distributed random variable then x is said to be a lognormal variableif p1 p2 p3 are the prices of a
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