The law of large numbers states that as the number of exposure units increases:
A) accuracy of predictions should improve
B) the chance of loss declines
C) Speculative risk increases
D) the number of accidents decreases

Question

Quizplus · Accepted Answer

The law of large numbers suggests that as the number of exposure units (examples, trials or observations) increases, the relative difference between the actual and expected outcomes decreases. Therefore, the accuracy of predictions should improve with an increase in the number of exposure units.

The Law of Large Numbers States That as the Number