According to the Law of Large Numbers,what Happens as the Number

question 18

Multiple Choice

According to the law of large numbers,what happens as the number of exposure units increases?

• A)Actual results will increasingly differ from probable results.
• B)Actual results will more closely approach probable results.
• C)Nondiversifiable risk will decrease.
• D)Objective risk will increase.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and how it's performing over time.

Foreign Direct Investment

A company or individual from one country deploying capital into business ventures or assets in another country, whether by setting up operations or purchasing business properties.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, often measured by GDP.

Population Growth

The increase in the number of individuals in a population, often measured as a percentage of the total population over a specific time period.