Find the Mean of the Lognormal Variable If the Mean

question 131

Multiple Choice

Find the mean of the lognormal variable if the mean and standard deviation of the underlying normal variable are 2 and 0.8, respectively.

• A) 0.69
• B) 2.32
• C) 10.18
• D) 11.02

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the payer’s ledger but have not yet been cashed or cleared by the bank.

General Ledger

A comprehensive accounting record of all transactions affecting a company, consolidated into debit and credit accounts.

Bank Statement

A monthly or quarterly document provided by a bank detailing all transactions in an account, including deposits, withdrawals, fees, and interest earned.

Imprest Petty Cash

A fixed amount of cash used for small, incidental expenses, replenished periodically.