Please ref. to Q11 of IFoA April 2011 (iii) part. I think this "2.3263" is coming from normal table. Can anyone kindly help me to understand why they are taking e^(mu+sigma*2.3263)? Is it because of log-normal and they have asked us to find the upper limit? In case they had asked us to find the lower limit, we had to do e^(mu-sigma*2.3263) right??? Please help me to understand this.
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Last edited by a moderator: Jun 30, 2017