Which of the Following Statements Is True About the Law

question 1

Multiple Choice

Which of the following statements is true about the Law of Large Numbers (LLN) ?

• A)The LLN states that if you simulate or conduct an experiment or simulation enough times theempirical probability observed will always match the theoretical probability that is expected.
• B)The LLN states that the empirical probability that is observed will simulate the theoreticalprobability that is expected for any finite number of trials, so a simulation or experiment neednot have an excessive number of trials.
• C)The LLN states that if an experiment with a random outcome is repeated a large number oftimes, the empirical probability that is observed is likely to be close to the theoreticalprobability.
• D)The LLN is almost always true, but there are special occasions, even when outcomes arerandom, when the LLN can be broken.

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Definitions:

Fair Value

The cost at which an asset could be sold or a liability could be resolved in a structured exchange among participants in the market as of the evaluation date.

Common Shares

are equity securities that represent ownership in a corporation, entitling holders to a share of the corporation's profits through dividends and/or capital appreciation.

Consolidated Financial Statements

Financial statements that show the financial position and results of operations for a parent company and its subsidiaries as one economic entity.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within a business's normal operating cycle if longer.