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How to distribute spreadsheet log

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welcome compadres today were going to learn how to mathematically model our data with a long normal distribution and then get our p90 p50 and p10 so if you recall in the introductory video we talked about putting our data on a plot and fitting it with a straight line in the case of a log normal distribution our straight line is going to be a equation of this form up here so the first step we want to do is we want to plot the natural log of our random variables or our data versus our z score so over here weve already determined our z score we just want to determine our natural log of our data values and then if we plot our z-score versus the natural log of our data values or random variables you plot that online right here so its already been plotted you can see that we fit a straight line through it using linear regression and we end up with the equation of this form so we can directly extract the standard v deviation and mean of our log normal variables right here so the next step

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How do you create a lognormal distribution?

The method is simple: you use the RAND function to generate X ~ N(, ), then compute Y = exp(X). The random variable Y is lognormally distributed with parameters and . This is the standard definition, but notice that the parameters are specified as the mean and standard deviation of X = log(Y).

How to do lognormal distribution in Excel?

Go to Excel and calculate the Lognormal Distribution. Write a formula for the Lognormal Distribution function. Select the respective value from the users table, Stock Value(x)=4, Mean of In(x)=3.5, Standard deviation In(x)=1.2 and Cumulative value will be TRUE.

What is the formula of lognormal distribution?

Lognormal distribution of a random variable If X is a random variable and Y=ln(X) is normally distributed, then X is said to be distributed lognormally. Similarly, if Y has a normal distribution, then the exponential function of Y will be having a lognormal distribution, i.e. X=exp(Y).

What is lognormal distribution used for?

The lognormal distribution is used to describe load variables, whereas the normal distribution is used to describe resistance variables. However, a variable that is known as never taking on negative values is normally assigned a lognormal distribution rather than a normal distribution.

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