MANAGEMENT

Detailed explanation-1: -The law of large numbers states that an observed sample average from a large sample will be close to the true population average and that it will get closer the larger the sample.

Detailed explanation-2: -The large numbers theorem states that if the same experiment or study is repeated independently a large number of times, the average of the results of the trials must be close to the expected value. The result becomes closer to the expected value as the number of trials is increased.

Detailed explanation-3: -The law of large numbers states that if the amount of exposure to losses increases, then the predicted loss will be closer to the actual loss. The use of the law of large numbers allows the number of losses to be predicted better.

Detailed explanation-4: -law of large numbers, in statistics, the theorem that, as the number of identically distributed, randomly generated variables increases, their sample mean (average) approaches their theoretical mean. The law of large numbers was first proved by the Swiss mathematician Jakob Bernoulli in 1713.