According to the Law of Large Numbers,when a Gamble Is

question 28

Multiple Choice

According to the law of large numbers,when a gamble is repeated many times,

• A) the average outcome increases.
• B) the average outcome is the expected value.
• C) the probability of each outcome changes.
• D) insurance becomes less profitable when many people buy it.

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Definitions:

Apparent Agency

A legal doctrine allowing a principal to be held liable for the actions of an agent, based on the appearance of authority given to the agent by the principal.

Principal's Actions

Refers to the deeds or activities undertaken by the principal figure in a contractual or agency relationship, affecting the relationship's legal standing.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, aiming to standardize and provide a legal framework for businesses and individuals engaging in commerce.