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That sounds nice, justifying why you expect your distribution to be the sum of other distributions, and not another operation like multiplication takes a lot mo
by smallnamespace 9y ago
That sounds nice, justifying why you expect your distribution to be the sum of other distributions, and not another operation like multiplication takes a lot more work; in some fields (e.g. finance), it's completely wrong.
- Houshalter 9y agoIf you multiply random numbers together you get a log normal distribution. Which means the logarithm of the number is normally distributed (multiplication is just adding logarithms after all.) However multiplicative noise is a lot less common than additive noise.