log-normal distribution

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The distribution such that the logarithm of the random variable is normally distributed. This distribution naturally results from the effects of a large number of independent but multiplicative sources of variation. It is contrasted with the normal distribution, which results when there are numerous independent and additive sources of variation. The log-normal distribution is upward skewed, with a mean larger than its mode, whereas a normal distribution is symmetrical about its mean.

Subjects: Economics.

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