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Dictionary · Measurement

Distribution, Not Average

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Distribution, not average is the principle that a legal outcome or duration should be reported as a full distribution with its spread and tail, never reduced to a mean. A mean hides the cases that decide the risk.

Legal outcomes are skewed and bounded. Most matters cluster, a few extend far out and some end in nothing. An average blends these into a number that no matter actually delivers.

Pricing off a stated percentile, reserving to the tail and reporting a band are the practical consequences. The same file produces the same distribution every time it is run.

The principle does not forbid summary figures. It requires that any summary be accompanied by the distribution it summarizes.

Where This Appears
Related Terms
Point EstimatePercentile BandMedianRight SkewPercentile Pricing

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