By egregory
via architects.dzone.com
Published: Jan 30 2013 / 09:33
In insurance, the law of large numbers (named loi des grands nombres initially by Siméon Poisson, see e.g. http://en.wikipedia.org/…) is usually applied to legitimate large portfolios, because of pooling and diversification: the larger the pool, the more ‘predictable’ the losses will be (in a given period).
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