The Law of Large Numbers means that as the number of observations of an event be

Question

The Law of Large Numbers means that as the number of observations of an event becomes larger, the running mean of the relative frequency of the event appears to settle down to a constant value, the probability of the event. You have just flipped a fair coin 7 times getting all heads. Does the coin owe you a tail? Although the mythical Law of Averages predicts you are due for a tail, no, the probability of a head on the next toss hasn't changed. The running mean of the relative frequency of the event appears to settle down to a constant value.

a. This is an example of the Law of Large Numbers.

b. This is an example of the Law of Averages.

Explanation / Answer

a)

The Law of Large Numbers means that as the number of observations of an event becomes larger, the running mean of the relative frequency of the event appears to settle down to a constant value, the probability of the event.

so flipping the coin continously is example of Law of Large Numbers

b)The law of averages is a layman's term for a belief that the statistical distribution of outcomes among members of a small sample must reflect the distribution of outcomes across the population as a whole.

so this is not the example of law of averages

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