Regression toward the mean

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Regression toward the mean

The tendency that a random variable will ultimately have a value closer to its mean value.
References in periodicals archive ?
Nevertheless, the negative impact of interest rates on statutory capital requirements may be longer term because many insurers' cash flow testing assumptions include reversion to the mean in their interest rate and equity market scenarios, which may deviate substantially from actual results.
If you are a believer in reversion to the mean, consider that S&P 500 constituents currently pay out only 36 percent of earnings, versus their long-term average of 54 percent.
Going forward we will continue to consistently apply our DAC amortization methodology, including our three-year reversion to the mean process(2)," Thresher added.