What principle states that as the number of individuals drawn from a population increases, the group becomes more representative of the entire population?

The Law of Large Numbers is a fundamental principle in statistics that asserts that as the size of a sample increases, the sample mean will get closer to the expected value, which is the population mean. This principle indicates that with a sufficiently large number of trials or observations, the average outcomes will closely approximate the overall population characteristics.

In practical terms, this means that if you were to repeatedly draw larger samples from a population, the characteristics of those samples, such as their average or proportion of a certain feature, will more accurately reflect those of the whole population.

This is pivotal in fields like insurance and risk assessment, where understanding the true risk or behavior of a population is crucial for making informed decisions. In this context, smaller samples can lead to significant variability and may not accurately predict outcomes or represent the population, while larger samples yield more reliable and stable estimates.