The law of small numbers describes:
A) the tendency for people to overstate the probability associated with rare events.
B) the ability to correctly estimate the expected outcome from a small number of events.
C) the higher probability that small numbers (like 1, 2, and 3 ) occur in random samples relative to large number (like 8 or 9 ).
D) the improved accuracy of averages to estimate relatively small numbers (on the order of 1 or 10 ) than relatively large numbers (on the order of 1,000 or 10,000 ).
A
You might also like to view...
The data in the above table show that the economy will be in a short-run macroeconomic equilibrium at a price level of
A) 90. B) 110. C) 100. D) 120.
An increase in the desired stock of housing would be caused by ________
A) an increase in household formation B) higher residential consumption C) a decrease in expected future income D) an increase in home prices