In multiplicative games where random effects multiply, log transformations convert the product of random numbers into sums of logs, which are normally distributed, producing log-normal distributions with heavy right tails and extreme inequality.
causalpending
Evidence Quote
“When you take the log of a product, that's the sum of the logs. So what was a product of random numbers then gets translated into sums of logs of random numbers, and that's what leads to this so-called log normal distribution”
Created: 8/11/2026, 6:45:34 AM
My Notes
Loading notes...