4 ms·
Due to the law of large numbers (LLN, either the weak or the strong version), the mean is what matters, and the median, mode, etc. don't. E.g., in coin flippin
by graycat 10y ago
Due to the law of large numbers (LLN, either the weak or the strong version), the mean is what matters, and the median, mode, etc. don't.
E.g., in coin flipping, if assign 0 to heads and 1 to tails and flip coins for a long time and take the empirical average, then that average coverges to the mean of 0 and 1, that is, 1/2. Of course, here the 1/2 is not even a typical value.
Similarly, to estimate what a venture firm will return in the long run, just take the average of what they have returned so far.
- deleted 10y ago[deleted]