Lognormal frequency distribution and Relationship capital: Difference between pages

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(Create page. Source: BoardEx webpage https://www.boardex.com/relationship-capital/)
 
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A lognormal distribution is one where the logarithm - for example log(X) or ln(X) - of the variable is normally distributed.  
Relationship capital is an organisation's economically valuable connections with customers, suppliers and potential customers and suppliers.


Lognormal distributions have a minimum - usually 'worst case' - value, whilst having an infinitely high upside.


A simplified illustration is set out below.
==See also==
* [[Capital]]
* [[Ecosystem services]]
* [[Environmental profit and loss]]
* [[Human capital]]
* [[Intellectual capital]]
* [[Manufactured capital]]
* [[Natural capital]]
* [[Social capital]]
* [[Sustainability]]
* [[Sustainability bond]]
* [[SHE]]
* [[System of Environmental-Economic Accounting]]
* [[World Forum on Natural Capital]]


A simple (non-symmetrical) lognormal distribution includes the following values:


0.01, 0.1, 1, 10 and 100.
===Other links===
[https://naturalcapitalforum.com/news/article/sustainability-jargon-buster--10-essential-terms-for-ceos Sustainability jargon buster] www.naturalcapitalforum.com


The median - the mid-point of the distribution - being 1.
[[Category:Commercial_drive_and_organisation]]
 
[[Category:Influencing]]
This distribution is skewed: most of the values being in the lower (left) part of the distribution, the upside being infinitely high, and the downside limit being 0.
[[Category:Knowledge_and_information_management]]
 
[[Category:Planning_and_projects]]
The logs - for example to the base 10 - of these values are:
[[Category:The_business_context]]
 
[[Category:Corporate_finance]]
log(0.01), log(0.1), log(1), log(10) and log(100)
[[Category:Investment]]
 
[[Category:Long_term_funding]]
= -2, -1, 0, 1 and 2.
[[Category:Identify_and_assess_risks]]
 
[[Category:Manage_risks]]
When the parent values are lognormally distributed, the transformed (log) values follow a (symmetrical) normal distribution.
 
So for example the mean, mode and median of the log values above (including -2, -1, 0, 1 and 2) would all be the same, namely the middle value 0.
 
 
== See also ==
* [[Frequency distribution]]
* [[Leptokurtic frequency distribution]]
* [[Lognormally distributed share returns]]
* [[Median]]
* [[Normal frequency distribution]]

Revision as of 10:27, 23 June 2021

Relationship capital is an organisation's economically valuable connections with customers, suppliers and potential customers and suppliers.


See also


Other links

Sustainability jargon buster www.naturalcapitalforum.com

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