The law of averages is a lay term used to express a belief that outcomes of a random event will "even out" within a small sample.
As invoked in everyday life, the "law" usually reflects bad statistics or wishful thinking rather than any mathematical principle. While there is a real theorem that a random variable will reflect its underlying probability over a very large sample, the law of averages typically assumes that unnatural short-term "balance" must occur. Typical applications of the law also generally assume no bias in the underlying probability distribution, which is frequently at odds with the empirical evidence.
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Famous quotes containing the word law:
“The so-called law of induction cannot possibly be a law of logic, since it is obviously a proposition with a sense.—Nor, therefore, can it be an a priori law.”
—Ludwig Wittgenstein (1889–1951)