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Johnny has just won a very large sum of money from a single pull of a lever on slot machine in Vegas. Assume you can
Johnny has just won a very large sum of money from a single pull of a lever on slot machine in Vegas. Assume you can put just one quarter in per pull. The average return from each pull is negative 5 cents. The return from each pull is independent. Johnny believes that on the next pull he will earn less money than he did on the last pull. Is his belief consistent with the law of small numbers or the law of large numbers? Explain.
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