The law of small numbers describes:
A) the tendency for people to overstate the probability associated with rare events.
B) the ability to correctly estimate the expected outcome from a small number of events.
C) the higher probability that small numbers (like 1, 2, and 3) occur in random samples relative to large number (like 8 or 9).
D) the improved accuracy of averages to estimate relatively small numbers (on the order of 1 or 10) than relatively large numbers (on the order of 1,000 or 10,000).

Question

Quizplus · Accepted Answer

The law of small numbers refers to the tendency for people to overgeneralize from small samples, assuming that small samples must be representative of the population they were drawn from. This leads to errors in estimating probabilities and the likelihood of rare events.

The Law of Small Numbers Describes