JKL Insurance Company estimates that 14 out of every 100 homeowners it insures will file a claim each year.Last year,JKL insured 200 homeowners.According to the law of large numbers,what should happen if JKL insures 2,000 homeowners this year?

Question

Quizplus · Accepted Answer

The law of large numbers states that as the sample size increases, the actual results will more closely approach the expected results. Therefore, as JKL insures more homeowners, the actual number of claims filed should become closer to the expected value of 14 per 100 homeowners.

JKL Insurance Company Estimates That 14 Out of Every 100