Chance and The Statistical Law of Large Numbers

  • Rosario D’Amico MPS Bank, Italy

Abstract




In this work we look at one special case to provide a rational basis for the following assertion known as Statistical Law of Large Numbers: If an event E has a constant probability p of occurrence on any one trial, and has occurred m times in n trials, then, if the relative frequency of E, m/n, approaches the value of a limit point l and the accuracy of the approximation increases as the number of trials increases, we have l = p. The argument we propose is based on the concepts of “event” and “trial”, formulated in a recent paper by the author himself, and their direct implications.




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Published
2021-12-31
How to Cite
D’AMICO, Rosario. Chance and The Statistical Law of Large Numbers. Journal of Mathematical Economics and Finance, [S.l.], v. 7, n. 2, p. 41-53, dec. 2021. ISSN 2458-0813. Available at: <https://journals.aserspublishing.eu/jmef/article/view/6879>. Date accessed: 27 nov. 2024. doi: https://doi.org/10.14505/jmef.v7.2(13).03.