Solution Found!
Choose the best answer, and explain. If X is a random
Chapter 4, Problem 8E(choose chapter or problem)
Choose the best answer, and explain. If X is a random variable with a lognormal distribution, then _________
i. the mean of X is always greater than the median.
ii. the mean of X is always less than the median.
iii. the mean may be greater than, less than, or equal to the median, depending on the value of \(\sigma).
Equation transcription:
Text transcription:
\sigma
Questions & Answers
QUESTION:
Choose the best answer, and explain. If X is a random variable with a lognormal distribution, then _________
i. the mean of X is always greater than the median.
ii. the mean of X is always less than the median.
iii. the mean may be greater than, less than, or equal to the median, depending on the value of \(\sigma).
Equation transcription:
Text transcription:
\sigma
ANSWER:Solution 8E
Step1 of 2:
Let us consider a random variable X it follows log normal distribution with mean and variance
That is
Here our goal is:
i).We need to check whether the mean of X is always greater than the median.
ii).We need to check whether the mean of X is always less than the median.
iii).