Suppose X is a random variable with population mean µX. Suppose we observe a random sample of X and estimate µX with the sample average X¯ = PN i=1 Xi . The law of large numbers says that
economics
Description
1. Suppose X is a random variable with population mean µX. Suppose we observe a random sample of
X and estimate µX with the sample average X¯ =
PN
i=1 Xi
. The law of large numbers says that
[a] The value of µ will get larger and larger as the sample size increases.
[b] As the sample size increases, the sample average and the value of µX will get larger and larger.
[c] The population mean of the sample average will get closer and closer to µX as the sample size increases.
[d] As the sample size increases, the sample average will converge in probability to µX.
[e] none of the above
