
Advanced Statistics Advanced Probability and Statistics Math Forum 
 LinkBack  Thread Tools  Display Modes 
February 8th, 2018, 02:11 AM  #1 
Newbie Joined: Sep 2017 From: xxxx Posts: 8 Thanks: 0  (normal distribution) E(e^x) and median of e^x of N(2,5)
Dear all, Started with a statistics course and even the basic concepts are a problem for me. Reason for that is that there are no examples in the book and just a bunch of formulas. It makes it hard to grasp the concept. I hope one can help me out! So the question is: IF x ~ N(2,5) what is E(e^x) and what is the median of e^x? Where is x is normally distributed. According to the solutions, the answer is 90.017 and 7.3891 respectively but there is no explanation! Can someone explain to me how I should approach this is plain English? any help is appreciated Kind regards 
February 8th, 2018, 03:53 AM  #2 
Senior Member Joined: Sep 2015 From: USA Posts: 2,264 Thanks: 1198 
if $X$ is distributed as $f_X(x)$ then $E[g(x)] = \displaystyle \int \limits_{\infty}^\infty~g(x) f_X(x)~dx$ here $f_X(x) = \dfrac{1}{5\sqrt{2\pi}}e^{\left(\dfrac{(x2)^2}{25}\right)}$ $g(x) = e^x$ I leave the integration to you. When $f_X(x)$ is continuous the median value of $g(x)$ occurs at $\tau$ where $P[g(x) < \tau] = P[g(x) > \tau]$ This leads to the integral equation $\displaystyle \int_{\infty}^\tau ~g(x)f_X(x)~dx = \int_\tau^\infty ~g(x)f_X(x)~dx$ which can be numerically solved for $\tau$ Again I leave this for you. 
February 8th, 2018, 04:28 AM  #3  
Senior Member Joined: Oct 2009 Posts: 695 Thanks: 232  Quote:
If $\mathbb{P}[g(X)<\tau] = 1/2$, then $\mathbb{P}[X<g^{1}(\tau)] = 1/2$. But then $g^{1}(\tau)$ is the median of $X$.  
February 8th, 2018, 11:47 AM  #4  
Senior Member Joined: Sep 2015 From: USA Posts: 2,264 Thanks: 1198  Quote:
What I should have done was let $Y = e^X$ a quick calculation which you should be able to replicate shows $f_Y(y) = \dfrac{f_X(\ln(y))}{y}$ This is the lognormal distribution. Now as both $f_X(x)$ and $f_Y(y)$ are continuous we can find the median, $\tau$ of $Y$ as $\displaystyle \int \limits_0^\tau ~f_Y(y)~dy = \dfrac 1 2$ This can be solved to obtain $\tau = e^\mu = e^2$  
February 10th, 2018, 03:47 AM  #5  
Newbie Joined: Sep 2017 From: xxxx Posts: 8 Thanks: 0  Quote:
Thank you for the answer! Your last answer helped me a lot. With respect to finding E(e^x) > I used the following formula: e^(u+0,5*variance) which solved the problem.  

Tags 
distribution, eex, median, normal 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Normal distribution  mathmathy  Probability and Statistics  6  August 16th, 2017 06:29 AM 
Stuck on probability distribution of a normal distribution problem  faker97  Advanced Statistics  1  May 2nd, 2017 11:51 AM 
Normal distribution: a probability distribution?  froydipj  Probability and Statistics  3  February 29th, 2016 05:35 PM 
Multivariate normal distribution and marginal distribution  nakys  Advanced Statistics  0  October 3rd, 2013 09:27 AM 
computing median of poisson distribution  koharudin  Advanced Statistics  0  November 18th, 2009 06:43 PM 