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Re: justfrank post# 105334

Tuesday, 07/01/2008 2:42:19 PM

Tuesday, July 01, 2008 2:42:19 PM

Post# of 157299
http://investorshub.advfn.com/boards/post_reply.asp?message_id=30409448

The law of averages is a lay term used to express a belief that outcomes of a random event shall "even out" within a small sample.

As invoked in everyday life, the "law" usually reflects bad statistics or wishful thinking rather than any mathematical principle. While there is a real theorem that a random variable will reflect its underlying probability over a very large sample, the law of averages typically assumes that unnatural short-term "balance" must occur.

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