Cobra Effect · Statistics and probability

Regression to the mean

Extreme results drift back towards normal, whatever you do.

5 cards, read aloud in 1:43, with a test and sources.

A biplane with two stacked wings and struts between them touching down on a grass airfield

A flight instructor swears that praise makes pilots worse.

Daniel Kahneman tells the story. Praise a cadet for a great landing and the next one is worse. Shout at a cadet for a terrible landing and the next one is better. So shouting works and praise doesn’t. Except it doesn’t.

An unusually good landing is partly luck.

The next one will probably be closer to the cadet’s average, whatever you say. An unusually bad one is partly bad luck. The next one will probably be better, whatever you say. The instructor was rewarded for punishing and punished for rewarding. By chance.

That is regression to the mean.

Francis Galton found it in the 1880s, measuring the heights of parents and children. Very tall parents have tall children, but usually less tall than themselves. Extremes are followed by something more ordinary, because extremes are partly noise.

It fools anyone who acts after an extreme.

The manager who steps in after a bad quarter and sees things improve. The remedy taken when the illness is at its worst. The sports star who has a great year, gets a magazine cover and then slumps. The cover didn’t cause the slump.

The question that saves you.

Was this extreme? If it was, the next one was always going to move back. Before you credit what you did, ask what would have happened if you had done nothing.

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