Law of Large Numbers
A statistical property of random variables. The law states that the more times you draw or generate a A quantity whose possible values are the outcomes of a random process. For example, the result of rolling a dice is a random variable with possible outcomes of 1, 2, 3, 4, 5 and 6. If the dice is ... More, the more likely the results you generate will resemble the true characteristics of the variable. For example, a fair coin, flipped once, will show either a 100% chance of either heads or tails. If the same coin is flipped 1,000 times, the observed percentage of outcomes that are heads has a 96% A percentage or the equivalent fraction that falls between 0% and 100% (i.e., between 0 and 1) that represents the ratio of the number of times that the outcome meets some criteria to the number of po... More of falling between 47% and 53%. The range around the true A percentage or the equivalent fraction that falls between 0% and 100% (i.e., between 0 and 1) that represents the ratio of the number of times that the outcome meets some criteria to the number of po... More of 50% gets much narrower the more times the coin is flipped.
I am also a retired property-casualty A professional who assesses and manages the risks of financial investments, insurance policies and other potentially risky ventures. Source: www.investopedia.com/terms/a/actuary.asp More (someone who works with the math and statistics related to insurance). I spent a significant portion of my career building statistical models of all of the financial risks of an insurance company and interpreting their findings to help senior management make better financial decisions. I retired in my late 50’s, which one of my daughter’s friends thought clearly qualified me to write this blog. Read more about Susie Q