My guess is that by taking a big number of readings of the measured parameter will cancel out the sensor inaccuracy to some extent. Or am I wrong ?
The law of large numbers (LLN) says that when averaging a large number of random variable realizations (here: measurements), the result will converge to the expectation of the underlying random distribution. You assume that's the "real" value.
That's only true if you can model your measurement to be a random variable whose expectation is the actual physical entity your measuring; if you model it as correct value + noise, then the noise must be "zero-mean".
That's generally not the case; usually, you have some systematic measurement error that you don't know.
So, yes, you're wrong.
However, repeated measurement will reduce the variance of the overall measurement, and hence make it more reliable (but can't erase the systematic error).
Attention: Your measurements should be stochastically independent, i.e. no use to measure things that are very correlated multiple times. This poses a problem.
how do I compute the accuracy of the averaged number of readings that I take over a period of time ?
"Accuracy" is not the right term here. You want to read up on what variance is. If your measurements are independent in zero-mean noise, but identical in the actual value thing, then averaging \$K\$ of them will reduce the variance by a factor of \$K\DeclareMathOperator{\Var}{Var}\$ of your measurement \$Y\$:
$$\Var(Y):=\Var\left(\frac1K\sum\limits_{i=1}^K X_\text{actual, const.}+N_i\right) = \frac 1K \Var(X_\text{actual, const.}+N) = \frac1K\Var(N)$$
For general estimation theory, you'll have to look into the Fisher Information of your measurement-based estimator, but hint: no fun at this stage.