Would someone be able to simplify the following;
Sum(from i=1 to N(t)) of X(i,t)
where N(t) is a poisson distributed random variable with mean 4.5
Each X(i,t) is an independent log-normal varibles with mean and variance of 20,000
need to repeat for each t = 1,2,3
I don't need this solved, just in a form where it can written into excel to be evaluated.
Also from about the 40 of the 150ish people I asked in my class about this, not one of us has even a slight clue as to how to do this
Sorry for the miss-statement, I haven't actually been taught compound poisson, but apparently am expected to know and understand it.
What I am after is the expected values and the variance, which I believe I can now evaluate, (though this is based only on what I have read of wikipeadia, so im not sure how correct this is)
Wald's equation - Wikipedia, the free encyclopedia
The variance can be calculated using a modified argument.