The Question of the “Regression” Fallacy

Abstract

In a previous article, Frank M. Bass presented data to show that drug-store expenses and gross margins at the extreme positions in an array at a particular point in time tended to move toward the center with the passage of time.

This same phenomenon had been measured many years ago in other types of retail stores by Horace Secrist, who concluded that the phenomenon indicated mediocrity in the stores. It has been alleged that this same conclusion was implied by the present author in the drug-store study. In this brief article he denies the allegation.