What is Law of Large Numbers?
Law of Large Numbers is a concept in probability and statistics that states that the average is closer to the expected or theoretical value as the number of trials or observations increases.
Example: If you flip a fair coin many times, the proportion of heads will get closer to 50% as you increase the number of flips.
Law of Large Numbers
Law of Large Numbers (LLN) is a mathematical theorem that states the average of the results obtained from many independent random samples.
In this article, we have discussed the Law of Large Numbers definition, its limitations, examples and others in detail.
Table of Content
- What is Law of Large Numbers?
- Limitation of Law of Large Numbers
- Types of Law of Large Numbers
- Why is Law of Large Numbers Important?
- Law of Large Numbers (LLN) and Central Limit Theorem (CLT)
- Examples of Law of Large Numbers
- Law of Large Numbers in Finance