Source: Huff and Geis, How to Take a Chance.
A misapplication of the Law of Large Numbers, where people try to apply long-run probabilities to short-run events. The false "Law of Averages" is not a mathematical phenomenon, but rather a psychological trick people play on themselves to convince themselves that favorable outcomes are about to occur, using past behavior to influence their reasoning.
A mathematical rule that states that as the number of trials of a chance experiment increase, the experimental probability of an event becomes closer to the true probability of that event.