How to Consider the Law of Large Numbers

The Law of Large Numbers illustrated with a dartboard. In the short term, a dart player may hit the bullseye a lot or miss the board altogether. However, in the long run, the dart player's accuracy will converge to the average accuracy of all dart players.

The Law of Large Numbers states that as the number of trials increases, the average of the results will get closer and closer to the true value. This is because the Law of Large Numbers takes into account the randomness of individual trials and averages out the random errors. This law has many applications. Read on to learn more.

09/08/2023 0

Pareto’s Law: the Power of the Vital Few for Maximum Results

Illustration of the Pareto's Law showing a pie chart sliced into an 80% and a 20% chunk for efforts, and an arrow showing that 20% of the effort yields 80% of the results displayed in another pie chart.

Pareto's Law is also known as the 80/20 Rule or Principle. The term was coined after Italian economist Vilfredo Pareto, who observed this principle in his studies. Pareto's Law states that approximately 80% of the effects come from 20% of the causes. It suggests that a minority of inputs or factors contribute to a majority of the outcomes or results. Read on to learn more.

21/05/2023 0

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