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Law of Large Numbers

A famous study by Amos Tversky and Nobel laureate Daniel Kahneman asked people to consider two hospitals. Hospital A is small and has 15 babies born per day. Hospital B has 45 babies born each day.

Over one year, each hospital recorded the number of days that it had more than 60% girls born. Assuming that 50% of all babies are girls, which hospital had the most such days?

Or do you think both will have about the same number of days with more than 60% girls born? Answer, and explain.

(Source: Amos Tversky. 2004. Preference, Belief, and Similarity: Selected Writings, ed. Eldar Shafir. Cambridge, Mass.: MIT Press, p. 205)

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M92598337

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