Which statement(s) is (are) true with regard to the law of large numbers?
I. By applying the law of large numbers, insurers prevent losses from occurring.
II. According to the law of large numbers, as the sample size increases, objective
risk declines.
(a) I only
(b) II only
(c) both I and II
(d) neither I nor II
Ans: (b) II only
Business
You might also like to view...
Compound interest means that interest is calculated only on the principal amount
Indicate whether the statement is true or false
Business
What causes manufacturing overhead to be underallocated? When manufacturing overhead is underallocated, will the Manufacturing Overhead account have a debit or a credit balance?
What will be an ideal response
Business