The Log Normal Distribution

If X is a normal random variable with parameters μ and σ, then Y=(e^X) is a log normal random variable with the same parameters. Note that μ and σ are not the mean and standard deviation of Y. Just as (by the central limit theorem) the sum of a large number of independent, identically distributed random variables is nearly normal, the product of a large number of independent, identically distributed random variables is nearly log normal. The red vertical line marks the mean of the distribution.

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Contributed by: Chris Boucher

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