📈 Like a normal log 📊 A special distribution

lognormal

1 8.2

A distribution where values become normal after taking the logarithm

noun
/ˌlɔɡˈnɔrməl/

Specialized

: lognormal

The lognormal distribution is often used in finance.

Examples

Many natural phenomena, such as the size of raindrops, follow a lognormal rather than a normal distribution.
In finance, stock prices are often modeled using a lognormal to account for their multiplicative growth.
The analyst assumed a lognormal for modeling the distribution of income in the population.
Data that follows a lognormal pattern can be analyzed effectively.
Many natural phenomena, such as the size of raindrops, follow a lognormal rather than a normal distribution.
The analyst assumed a lognormal for modeling the distribution of income in the population.
In finance, stock prices are often modeled using a lognormal to account for their multiplicative growth.

Surface Forms

lognormal singular

lognormals plural

Morphology

lognormal = log + normal (semi-transparent) = log + normal

The noun denotes a distribution whose logarithm is normal; the morphological parts are clear but the meaning is technical.

Etymology

Lognormal joins log (short for 'logarithm') and normal (the bell-shaped 'normal' curve). So a lognormal is a distribution whose logarithm makes the data follow a normal curve, which is why we use it for things that grow by multiplying, like incomes or prices.