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The Law of Large Numbers allows for ALL of the following, EXCEPT:

a. Calculation of rates to compensate for losses.
b. Prediction of individual losses based upon past experience.
c. A decreased degree of error in predicting losses of large groups.
d. Prediction of group loss based upon past experience.

1 Answer

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Final answer:

The Law of Large Numbers allows for all of the following except: Prediction of individual losses based upon past experience.

Step-by-step explanation:

The Law of Large Numbers allows for all of the following except: Prediction of individual losses based upon past experience.

The Law of Large Numbers states that as the number of trials in a probability experiment increases, the difference between the theoretical probability of an event and the relative frequency approaches zero.

It allows for the calculation of rates to compensate for losses, a decreased degree of error in predicting losses of large groups, and the prediction of group loss based upon past experience.

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