Which of the following statements is true?
A)The law of large numbers is another name for the gambler's fallacy.
B)In the long run the law of large numbers is another name for the gambler's fallacy.
C)The law of large numbers is the best way of avoiding standard errors.
D)The gambler's fallacy is an informal name for standard error.
E)None of the above.

Question

Quizplus · Accepted Answer

None of the statements are true. The law of large numbers states that as the number of trials increases, the average outcome will converge to the expected value. The gambler's fallacy is the false belief that previous outcomes affect future outcomes in a random process. Standard error is a measure of the variability of sample means from the true population mean. None of these concepts are interchangeable or equivalent.

Which of the Following Statements Is True