How to avoid inf

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antonet on 29 May 2014
Answered: Udit Gupta on 29 May 2014
Dear all,
I take the log of difference between two standard normal CDFs,
that is
but in most of the cases D=inf. Is there a way to avoid having inf?
Thanks in advance,

Accepted Answer

Udit Gupta
Udit Gupta on 29 May 2014
Log of zero is -Inf. To avoid that add a small number before taking the log. For example -
D = log(normcdf() - normcdf() + 0.00001)

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