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Unformatted text preview: of the products. The law of large numbers says as the number of observations increases, the mean of the observed values eventually reaches the mean of the population. The law of small numbers is just stating the opposite. Rules for means -If x is a random variable and a and b are fixed numbers then a +bx = a+b x-If X and Y are random variables then The variance of a discrete random variable x is each individual observation minus the mean of all of the observations squared times the probability of that point. You do this for each point and add them together. The standard deviation is the square root of the variance. Rules for variances -If X is a random variable and a and b are fixed numbers then 2 a+bx = b 2 2 x-If X and Y are independent random variables, then 2 xy = 2 x + 2 y...
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