Statistical Error: Regression to the mean
Definition: In any event where luck or chance is involved,extreme outcomes are followed by more moderate ones.
1. Provide a Human Resource decision that has to be made as anexample to regression to the mean.
2. Errors typically occur because the data used to make thedecision is flawed in some way. What flawed data could lead to theerror for this decision?
3. Think about what data could be used instead (to avoid theerror: regression to the mean)?
4. What parameter or statistic will you use to represent thedataset?
5. How could this help avoid the error?
