Hi I'd like to check my understanding please, with regard to the calculation of var[S(2)] halfway down the solution. At first, I was expecting = 60 . exp{6+1.1} . (exp{1.1} - 1) i.e. from the variance of the lognormal distribution. But is the answer correct because this is a compound Poisson distribution, so that var = lambda.m2 (i.e Poisson parameter multiplied by the second moment of the lognormal distribution (E[X^2], not var[X]))? Thanks Jooser
