the concept of ‘randomness’ is based on which of the following assumption ? 

The correct answer is - While individual events cannot be predicted with accuracy, aggregate events can.

Key Points

• Randomness
  • The concept of randomness suggests that individual events cannot be predicted with accuracy.
  • However, when considering a large number of events, known as aggregate events, patterns can be observed, and predictions become more accurate.
  • This is because random variations tend to cancel each other out when a large number of events are considered, leading to a more predictable outcome.

Additional Information

• Law of Large Numbers
  • The Law of Large Numbers states that as the number of trials or observations increases, the average of the results obtained from these trials will get closer to the expected value.
  • This law is fundamental in probability and statistics, providing the foundation for many statistical principles.
• Central Limit Theorem
  • The Central Limit Theorem states that the distribution of the sum (or average) of a large number of independent, identically distributed random variables tends to be normally distributed, regardless of the original distribution of the variables.
  • This theorem explains why aggregate events tend to follow a predictable pattern even if the individual events are random.
• Predictability in Statistics
  • In statistical analysis, the predictability of aggregate events allows researchers to make accurate predictions about populations based on sample data.
  • This is key for fields like economics, medicine, and social sciences, where individual behavior may be unpredictable, but aggregate behavior is measurable and predictable.