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You are on page 1of 2

Rather than use average and standard deviation to measure the likely and the

spread of results, Luco and Cornell (1997, proposed that median, x!

and

dispersion, "(ln #

i

are more reasona$le measures, given that the spread of data does

not necessarily follo% a normal distri$ution and that there may $e several e#treme

values in the data& ' log normal distri$ution also restricts the varia$le to positive

num$ers, %hich is often the case in engineering applications&

Definition:

(he log)normal distri$ution is a single)tailed pro$a$ility distri$ution of any random

varia$le %hose logarithm is normally distri$uted& *f + is a random varia$le %ith a

normal distri$ution, then , - e#p(+ has a log)normal distri$ution. like%ise, if , is

log)normally distri$uted, then log(, is normally distri$uted& ((he $ase of the

logarithmic function does not matter/ if loga(, is normally distri$uted, then so is

log$(,, for any t%o positive num$ers a, $ 0 1&

1ro$a$ility density function/

2

, . (

2

2

2

(ln

x

e

x f

x

=

3or # 4 5, %here 6 and " are the mean and standard deviation of the varia$le7s

logarithm ($y definition, the varia$le7s logarithm is normally distri$uted&

8hen 6-5, for various /

Properties:

*f x has a log)normal distri$ution, that is ln(x has a normal distri$ution %ith mean

and standard deviation , then/

9ean/

2 : e#p(

2

+ =

x

;tandard deviation/ 1 e#p(

2

=

x x

9ode/ e#p( (

2

= x Mode

9edian/

n

n

n

i

i

x x x x x

n

x &&& ln(

1

e#p e#p( !

< 2 1

1

=

= =

=

=ispersion/

=

= =

n

i

i x

x

n

1

2

ln

(ln

1

1

*f you are given the normally distri$uted mean 6

#

and standard deviation "

#

for x

%hich is log)normally distri$uted, to find the dispersion and median for a log)normal

distri$ution/

=

2

ln

2

ln

2

1

ln( e#p !

1 ln

x x

x

x

x

x

Confidence intervas:

;pecifying confidence intervals can $e calculated using the log)space or the median

and dispersion (i&e& the geometric mean x!

and geometric standard deviation

e#p(

lnx

/

1ercentile value Log)space 9edian > dispersion

99&9?

< e#p( +

[ ]

<

ln

e#p( !

x

x

97&7?

2 e#p( +

[ ]

2

ln

e#p( !

x

x

@A&1?

e#p( + [ ] e#p( !

ln x

x

B5&5?

e#p(

x!

1B&9?

e#p(

[ ]

1

ln

e#p( !

x

x

2&<?

2 e#p(

[ ]

2

ln

e#p( !

x

x

5&1?

< e#p(

[ ]

<

ln

e#p( !

x

x

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