what is the law of large numbers 
the law of large numbers states that as the number of trials or experiments increases the average of the results obtained approaches the expected value or true probability this principle assures that the sample mean converges to the population mean as more observations are collected providing stability to statistical inference the bottom lineprobability distributions describe all of the possible values that a random variable can take this is used in investing particularly in determining the possible performance of a stock as well as in the risk management component of investing by helping to determine the maximum loss 