With respect to students and test scores,
reversion to the mean suggests that students with scores in the upper or lower tail of the test - score distribution are likely to perform closer to the average when tested more than once.
Not exact matches
The math
suggests a nearly 90 percent probability that
mean reversion will occur over the next three months, with yields falling and the gold price rising back
to its
mean.
I continue
to believe that rates will have
to go up (e.g.
reversion to the
mean, reduce the «real» value of $ 20T in US debt, expiration of «conspiracy theory»
suggesting the Fed held rates on the floor until the election
to get Hillary elected, etc, etc)....
Mauboussin's research seems
to suggest that, while there exists a strong tendency towards
mean reversion, some companies do «post persistently high or low returns beyond what chance dictates.»
Climate shifts are in principle unpredictable — but I
suggest that a cooler state space is more likely on the basis of
reversion to the
mean.
There is a simple statistical rule —
reversion to the
mean — that
suggests that the energy gain in the 20th century from this system will be reversed over centuries
to come.