The law of large numbers is relevant to the estimation of:
A) objective probabilities
B) subjective probabilities
C) both objective and subjective probabilities
D) neither objective nor subjective probabilities

Question

Quizplus · Accepted Answer

The law of large numbers is a mathematical theorem that describes the stability of the mean of a large number of independent random variables. It is relevant to the estimation of objective probabilities, which are based on actual frequencies observed in the long run. Subjective probabilities, on the other hand, are based on personal beliefs or opinions and are not necessarily tied to actual frequencies. Therefore, the law of large numbers is not applicable to subjective probabilities.

The Law of Large Numbers Is Relevant to the Estimation