law of large numbers

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Law of large numbers

The mean of a random sample approaches the mean (expected value) of the population as sample size increases.

Law of Large Numbers

A mathematical theory that states that the statistical likelihood of a sample having a certain value approaches the statistical likelihood of the whole universe of samples as the sample becomes larger. For example, this is the reason political polls tend to be more accurate the larger they are. This is also called Bernoulli's Law.

law of large numbers

the law that states that large groups tend to behave more uniformly than a single individual. For example, an individual consumer might buy more of a product the price of which has risen, whereas most consumers would buy less. See DEMAND CURVE.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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Central Limit Theorem

References in periodicals archive ?

However, the researchers found that people with high levels of interest in a topic rely more on the Law of Large Numbers, assessing both consensus and the size of a poll.

But is a picture worth a thousand people? Effects of pictorial vividness and numeric representation on attitudes toward the China-Tibet issue

They don't happen often enough for the law of large numbers to work.

Managing catastrophic risk: getting beyond the insurance crisis; The incidence of catastrophic risk has increased markedly, and insurance rates have risen with it. Some companies are re-examining the issue of self-insurance or even doing without and using their equity base to cover potential risks

For the first question, 81 of the 108 participants (75%) correctly answered that all choices were equally likely while only 15 participants (13.9%) correctly answered that three tails in five flips is more likely than 3000 tails in 5000 flips for question three (Q3) concerning the law of large numbers.

Stochastic misconceptions of pre-service teachers

Notions of the law of large numbers (e.g., the importance of repeated trials or larger sample size) have been shown to exist in children as early as 7 years old (although at a rudimentary level) and most children by the age of 12 are able to recognize the importance of sample size in statistical tasks (Piaget & Inhelder, 1951/1975; Nisbett, Krantz, Jepson, & Kunda, 1983).

The persuasiveness of computer-based simulations on students' probabilistic misconceptions

The law of large numbers makes it a certainty that a very small handful of the college's 800 plus employees will be involved in local politics of all shades of opinions.

College has no political influence

There is also the law of large numbers to think about.

Rules of the Game

In this case, and in most valuations, the number of comparable sales is too small for the law of large numbers to operate, so the variability estimate would not be reliable and could change if additional sales were added to the list of comparables.

Thinking Statistically About Valuations

This mathematical theory is known as the law of large numbers. As the children actively explore probability, they develop skills that will help them become better decision makers.

Anything's Possible

Crants allows that the law of large numbers will eventually catch up, but says CCA can continue to grow.

The P&G of prisons

This is what statisticians call "The Law of Large Numbers": the bigger the group, the smaller the risk (unless, of course, the group is selected on the basis of some risk factor, such as being residents of a leper colony).

A health-care plan most of us could buy: it's right under Congress' nose

Probability risk, "the organizational effort to manage the Law of Large Numbers," reflects the simple fact that unpredictable events in health care happen more predictably as the population base under consideration grows larger.

Risk alignment in health care quality and financing: optimizing value. (Value-Based Health Care)