law of large numbers

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Definitions from WordNet

Noun law of large numbers has 1 sense

Bernoulli's law, 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
--₁ is a kind of law, law of nature

Definitions from the Web

Law of Large Numbers

The law of large numbers is a fundamental principle in probability theory, which states that as the number of independent trials or observations increases, the observed frequency of an event will approach its true probability.

Sense 1 (Probability Theory):

Noun

The law of large numbers states that the average of the results obtained from a large number of trials or observations should be close to the expected value.

Example sentence: The law of large numbers guarantees that if a fair coin is tossed repeatedly, the proportion of heads will converge to 0.5 in the long run.

Sense 2 (Finance):

Noun

In finance, the law of large numbers refers to the principle that as the number of samples or events increases, the observed results are likely to approach the expected outcomes.

Example sentence: In portfolio theory, the law of large numbers suggests that as an investor diversifies their holdings, the risk associated with individual investments decreases.

Sense 3 (Sociology):

Noun

In sociology, the law of large numbers is a concept that describes how statistical regularities emerge when analyzing large populations or groups.

Example sentence: The law of large numbers helped sociologists understand the patterns and trends that arise when studying a vast number of individuals' behaviors and attitudes.