Which of the following terms describes when firms with high scores tend to have more than their share of luck in rankings?
A)Measurement bias
B)Process error
C)Mean regression
D)Multitasking
E)Mean reversion

Question

Quizplus · Accepted Answer

Mean reversion describes when high scores tend to have more luck in rankings. This occurs because high scores are often the result of a combination of skill and luck, but over time, luck evens out and the scores regress to the mean.

Which of the Following Terms Describes When Firms with High