Being somewhat puzzled about the results, you call your econometrics professor and describe the results to her.

Being somewhat puzzled about the results, you call your econometrics professor and describe the results to her. She says that she is not surprised at all, since this is an example of “Galton’s Fallacy.” She explains that Sir Francis Galton regressed the height of offspring on the mid-height of their parents and found a positive intercept and a slope between zero and one. He referred to this result as “regression
towards mediocrity.” Why do you think econometricians refer to this result as a fallacy?

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