The distribution model of S_n~logN(nμ,n^2σ^2) Why is it that in solution of question 2(ii) we instead used S_n~logN(nμ,nσ^2)
S_n~logN(nu, n^2 SD^2) is used when i is constant annual rate of interest..interest rate is not independent. If i is independent, then we use nSD^2... That is my understanding after comparing Qs 4.13 and 4.19 of Part 4. Some one please correct me if i am wrong..
