Lognormal

usgb/lɑɡˈnɔr.məl/
adjective

Referring to a distribution of a random variable whose logarithm is normally distributed.

In many financial models, asset prices are assumed to follow a lognormal distribution.
Visual representation of "lognormal" - Referring to a distribution of a random variable whose logarithm is normally distributed.

Often appears as...

  • lognormal distribution
  • lognormal variable

Usage tips

Formal

lognormal distribution, lognormal model, lognormal variable

Definition 1 of 1
Visual representation of "lognormal"
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Statistical Usage

In statistics, 'lognormal' indicates how data behaves.

Illustration for Statistical Usage
Models like financial returns are often lognormal.
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Technical Context

Often used in technical fields such as finance and biology.

Illustration for Technical Context
Understanding the lognormal distribution can enhance risk assessment.
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Data Interpretation

Interpreting data as lognormal can change analysis outcomes.

Illustration for Data Interpretation
Focusing on skewness rather than averages is crucial.
Visual representation of the word "Lognormal"

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