Which of the following statements best characterizes the relationship between the normal and lognormal distributions?
A. The lognormal distribution is the logarithm of the normal distribution.
B. If the natural log of the random variable X is lognormally distributed, then X is normally distributed.
C. If X is lognormally distributed, then the natural log of X is normally distributed.
D. The two distributions have nothing to do with one another.
Answer:C
X is said to be lognormally distributed if its logarithm Y = ln(X) is normally distributed.