Show that if X N 2 and a0 then aXb Na b a22 from Option V

Show that if X ~ N (?,?^2) and a?0, then aX+b ~ N(a? + b, a^2?^2) from

Option Valuation: A First Course in Financial Mathematics Chapter 3: Random Variables 3.7 Exercises

by Hugo D. Junghenn

8. Show that, if X ~ N(, 2) and a 0, then aX + b ~ N(

Solution

A random variable usually written X is a variable whose possible values are numerical outcomes of a random phenomenon .there are two typesof random variables,discrete and continuous

discrete variable has a countable number of possible values