A Note on the Ratio of Two Normally Distributed Variables
- 1 July 1975
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Management Science
- Vol. 21 (11) , 1338-1341
- https://doi.org/10.1287/mnsc.21.11.1338
Abstract
This note is a continuation of a previous paper on normal approximations of standard forms. The standard form treated here is the ratio of two normally distributed variables. It is found that a suitable transformation of this ratio is approximately normally distributed provided that the coefficient of variation of the denominator is less than 0.39.Keywords
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