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Suppose that X has the log normal distribution with parameters 4.1 and 8. Find the distribution of3X1/2

Short Answer

Expert verified

3X1/2~ ln N (3.1486,2)

Step by step solution

01

Given information

X is a lognormal distribution with parameters 4.1 and 8

02

Finding the distribution

Since,

log (3X1/2) = log (3) + 1/2log(X)

We know that, log (3X1/2) has a normal distribution with the mean,

\(\begin{array}{c}\mu = \log \left( 3 \right) + \frac{{4.1}}{2}\\ = 3.1486\end{array}\)

And the variance,

σ2 = 8/2

= 2

This means that 3X1/2 has the lognormal distribution with parameters 3.1486 and 2

i.e.,

3X1/2~ ln N(3.1486,2)

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