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Investments glossary

Law Of Large Numbers

The law of large numbers, in probability and statistics, states that as a sample size grows, its mean gets closer to the average of the whole population. In the 16th century, mathematician Gerolama Cardano recognized the Law of Large Numbers but never proved it. In 1713, Swiss mathematician Jakob Bernoulli proved this theorem in his book, Ars Conjectandi. It was later refined by other noted mathematicians, such as Pafnuty Chebyshev, founder of the St. Petersburg mathematical school.

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