VGStockz Daily (Feb 20th 2012)
Law of Large Numbers (source: NASDAQ.com Glossary)
The mean of a random sample approaches the mean (expected value) of the population as sample size increases.
Brief Study of term Law of Large Numbers
In the field of statistics, I believe the objective is to find the values that best represent reality. Since a population under study has a number of characteristics, some of which the mean would be the most interesting value, the closer the sample size is to the size of the actual population, the closer the mean of that sample will reflect the mean of the population. Hence, the closer you are to your objective in this case (if mean is the measure you are most interested in).
Since the population is made up of different segment, each considered in the calculation as important as part of the makeup of the population under study, the smaller the sample, the greater the chances of falling on a sub-segment of the total population, eskewing the results. Odds are, the greater the sample size, the less likely this is to occur.
Daily News + Daily Stock Watch
A reminder that the markets will be closed all day tomorrow, as it is a statutory holiday (Washington's Birthday, coincidentally also Family Day in certain provinces of Canada and other commonwealth countries).
Keep in mind, markets open Tuedays, February 21st. That will be the kick-off date for the Market Simulator League as well. You still have time to register. Note that it's a pilot project for now, so feedback is the main purpose of this first round (which lasts a month).
