A Note on the Ratio of Two Normally Distributed Variables
Jack Hayya, Donald Armstrong, Nicolas Gressis
Management Science · 1975 · Volume 21 · Issue 11
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.
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