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Reversion to the Mean

Holger von Jouanne-Diedrich explains an important statistical concept we all too often forget:

In the realm of business and leadership, one statistical phenomenon often goes unrecognized yet significantly influences our understanding of performance and success. This is the concept of reversion to the mean (also called regression to the mean). This seemingly simple statistical occurrence can profoundly impact how we perceive management strategies, leadership effectiveness, and even the fate of those gracing the covers of prominent magazines. To understand what is going on, read on!

Read on for a video in German and an article in English, with some bonus R code to sell the story.