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.
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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.
ij] = O (1/n), it follows by applications of the law of large numbers that
Of the 83 participants who gave written responses to the law of large numbers question, 23 (27.
In other words, notions of the law of large numbers may have had an influence on students' conclusions.
Because potential for measurement errors, omitted variables biases, and adjustment errors usually increase as properties become less similar, the choice of the number of comparable sales to use is a tradeoff between increasing dissimilarity leading to higher adjustment errors versus larger sample size which allows the law of large numbers to reduce random variation.
But the moment you become a "mature" company, the law of large numbers catches up with you.
This factor presents an exception to the law of large numbers argument used above, because it is not possible for an intermediary to diversify away this risk.
In order to have a situation which to be fitted for the Central Limit Theorem, as well as for the Law of Large Numbers, we have to consider a sufficiently large number of observations.
With such a huge quantity, the law of large numbers begins to take effect, and a major growth margin becomes difficult or impossible to achieve.
At some point, the law of large numbers, which encourages averaging, gives way to the principle of diminishing returns.
Economists call it the Law of Large Numbers, and it smoothes out the good and bad news over a longer period of time.
Kane discuss how the law of large numbers applies to the strength of insurance.