Question: Let y = ex , where x is normally distributed with mean and variance 2. Show that stdev(y) E[y] = e 2 1

Let y˜ = ex˜

, where x˜ is normally distributed with mean μ and variance σ2.

Show that stdev(y˜)

E[˜y] =



eσ 2 −1 .

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Equity Asset Valuation Questions!

Q:

Let x(t) = 2 + 4 sin(3t) + 6 cos(8t + /3). This is a periodic signal. (a) Determine the average power Pav in x(t). (b) Determine the fundamental frequency 0 of x(t). (c) Compute the CTFS coefficients...

Q:

Find the area of each of the shaded regions: yA y = x + 1 1 1

Q:

In Exercises, find the derivative of the function. y = In COS X cos x - 1

Q:

8.4.6 Let be a standard normal random variable. (a) For an arbitrary constant a, show that (b) Let X be normally distributed with mean and variance 2. Show that E[-a)]=(a) a[1-(a)].

Q:

A large national survey conducted in 1995 indicated that 18% of American adults had ever been tested for HIV at some point in their life. Suppose that in 2016 we take a simple random sample of 100...

Q:

Unit II Continuous Probability Distributions: The Normal Distribution Normal Dist1 Towards the Meaning of Continuous Probability Distribution Functions: When we introduced probabilities, we spoke of...

Q:

An investor has an investment horizon of three years. She is pondering two portfolios, one index portfolio and a hedge fund. All rates are annual continuously compounded. The index premium is 5% per...

Q:

4.6. Let be a standard normal random variable. (a) For an arbitrary constant a, show that E[(e - a)+] = 4 (a) - a[1 - 4)(a)] (b) Let X be normally distributed with mean and variance cr2. Show that...

Q:

Let x be normally distributed with mean and variance 2 . Calculate I n ( ) for samples of size n .

Q:

IOE 419 Mark S. Daskin Service Operations Management IOE Department Winter, 2017 University of Michigan Problem set 4 DUE: MONDAY - February 20, 2017 Points: 100 points total Problem 1: Babette has...

Q:

Suppose you are planning to collect a set of data in an experiment where the null hypothesis states that the population mean will be 15. You plan to collect 30 observations, and you expect the...

Q:

Define computer crime and list several examples of computer crime.

Q:

The capitalization rate and discount rate is actually a yield rate based on: a . Safe or reasonable rate plus compensation for investment b . Safe or reasonable rate plus compensation for risk c ....

Q:

At the instant shown in Figure 32. 40 , the potential difference across the capacitor is half its maximum value and the charge on the plates is increasing. Draw the direction of the current and...

Q:

The inclusion of index returns prior to 2001 would be expected to A. Bias the historical equity risk premium estimate upwards. B. Bias the historical equity risk premium estimate downwards. C. Have...

Q:

The inclusion of index returns prior to 2001 would be expected to A. Bias the historical equity risk premium estimate upwards. B. Bias the historical equity risk premium estimate downwards. C. Have...

Q:

The events of 2004 to 2006 would be expected to A. Bias the historical equity risk premium estimate upwards. B. Bias the historical equity risk premium estimate downwards. C. Have no effect on the...

Q:

Fox Company recibi los siguientes informes de su plan de pensiones de beneficios definidos para el ao calendario actual: PBO Activos del plan Balance, 1 de enero $600,000 Balance, 1 de enero $500,000...

Q:

Assignment: Understanding and Implementing Perceptron and Adaline Networks in MATLAB Objective: The objective of this assignment is to gain a deep understanding of the Perceptron and Adaline...

Q:

The amount of time necessary for assembly line workers to complete a product is a normal variable with a mean of 15 minutes and a standard deviation of 2 minutes. (a) Calculate the probability that a...