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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
law of large numbersthe 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