Calculating the regression-to-the-mean effect: A comparative analysis

Abstract

Various methods are compared to calculate the regression-to-the-mean (RTM) effect in segmentation analysis, based on the results of a test mailing, distinguishing between the case of no-prior, non-parametric, and parametric knowledge on the distribution of the response rates of segments across the list. The advantages and disadvantages of each method and its implication for decision making are discussed.