law of large numbers


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law of large numbers

law of large numbers

n
(Statistics) the fundamental statistical result that the average of a sequence of n identically distributed independent random variables tends to their common mean as n tends to infinity, whence the frequency of the occurrence of an event in n independent repetitions of an experiment tends to its probability

law′ of large′ num′bers


n.
the theorem in probability theory that the number of successes increases as the number of experiments increases and approximates the probability times the number of experiments for a large number of experiments.
[1935–40]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.law of large numbers - (statistics) law stating that a large number of items taken at random from a population will (on the average) have the population statistics
law of nature, law - a generalization that describes recurring facts or events in nature; "the laws of thermodynamics"
statistics - a branch of applied mathematics concerned with the collection and interpretation of quantitative data and the use of probability theory to estimate population parameters
References in periodicals archive ?
6) In brief, the law of large numbers says that the greater the number of independent incidents included in the study, the more likely the frequency will resemble the expected outcome.
The Securitas Holdings decision even more plainly stated that "[r]isk distribution incorporates the law of large numbers which has been described as follows: 'As the size of the pool increases, the chance that the loss per policy during any given period will deviate from the expected loss by a given amount (or proportion) declines'" (citation omitted).
A mistaken notion connected with the law of large numbers is the idea that an event is more or less likely to occur because it has or has not happened recently.
Risk transfer - insurance provides an efficient mechanism of risk transfer by pooling the risks of a large number of individuals (such as the family home being destroyed) based on the law of large numbers.
However, former diplomat Ado Paglinawan, a US-based political activist and consultant, dismissed the application of the law of large numbers theory.
Unlike traditional immediate annuities, variable annuities' income guarantees do not simply operate by pooling risk and letting the law of large numbers work for them, because the relevance of the variable annuity guarantees is determined by unpredictable market fluctuations, not large-numbers-predictable mortality.
The insurance business is based on the law of large numbers, that as the number of risks in a portfolio increases, the riskiness of the portfolio decreases," Fitzpatrick states.
variables, both the weak and strong law of large numbers have been established under different conditions by Loeve [1] and Tucker [3] etc.
The law of large numbers says that if you want more sales, you have to make more calls.
But in those cases, the companies ran up against the law of large numbers, requiring ever-greater successes to sustain their huge structures.
The law of large numbers states the probability of an event p, [P.
Among his topics are fuzzy numbers and fuzzy vectors, empirical correlation for fuzzy data, a law of large numbers, generalized confidence regions, fuzzy predictive distributions, classical regression analysis, and stochastic method in fuzzy time series analysis.