The lognormal distribution Let X N; 2 and Y10X/10. Therefore Y is lognormal-distributed. Compute the mean and

The lognormal distribution Let X Nð
; 2Þ and Y¼10X/10. Therefore Y is lognormal-distributed. Compute the mean and the variance of this lognormal distribution.

Hints: This problem can be solved using moment generating functions. The moment generating function of x is defined by MXðtÞ

EðetxÞ:

Since Y can be expressed as the exponential of x, by substituting t with specific values, the mean and the variance can easily be obtained. The generating function is also a powerful tool for other distributions.