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Lognormal distribution

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Definition of Lognormal distribution

Lognormal Distribution Image 1

Lognormal distribution

A distribution where the logarithm of the variable follows a normal distribution.
lognormal distributions are used to describe returns calculated over periods of a year or more.



Related Terms:

Cumulative probability distribution

A function that shows the probability that the random variable will
attain a value less than or equal to each value that the random variable can take on.


Distributions

Payments from fund or corporate cash flow. May include dividends from earnings, capital
gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by
investing in additional shares. Funds are required to distribute capital gains (if any) to shareholders at least
once per year. Some Corporations offer Dividend Reinvestment Plans (DRP).


Frequency distribution

The organization of data to show how often certain values or ranges of values occur.


Normal probability distribution

A probability distribution for a continuous random variable that is forms a
symmetrical bell-shaped curve around the mean.


Probability distribution

Also called a probability function, a function that describes all the values that the random variable can
take and the probability associated with each.


Skewed distribution

Probability distribution in which an unequal number of observations lie below and
above the mean.


Standardized normal distribution

A normal distribution with a mean of 0 and a standard deviation of 1.


Lognormal Distribution Image 2

Probability Distribution

A list of all possible outcomes and the chance of each outcome
occurring


distribution cost

a cost incurred to warehouse, transport, or deliver a product or service


probability distribution

a range of possible values for which each value has an assigned likelihood of occurrence


Normal (bell-shaped) distribution

In statistics, a theoretical frequency
distribution for a set of variable data, usually represented by a bell-shaped
curve symmetrical about the mean.


Distribution center

A branch warehouse containing finished goods and service
items intended for distribution directly to customers.


Distribution inventory

Inventory intended for shipment to customers, usually
comprised of finished goods and service items.


 

 

 

 

 

 

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