A random variable X has a lognormal distribution if Y = ln X has a normal distribution. For this problem, assume that Y has a mean and standard deviation of 0.353 and 0.754 (a) What are the possible values X can take?
(b) What is the probability that X is between 1 and 2?

Step-by-step explanation:

From the given information:

For X to be valid, the possible values of X should be greater than zero i.e. X > 0

If X obeys a lognormal distribution

Then; Y = In X

So,

Now,

Also;

V(X) = 2.7387

∴

SD(X) = 1.6549

= 0.108

according to this law, when unemployment goes up by 1%, gdp drops by 2%. in the question, unemployment rate goes from 2% to 5%, meaning unemployment goes up by 3%, so the gdp drops by 6%. thus the effect is a drop in gdp by 6%.

step-by-step explanation: