Incoprea Theory
Vol. XXXI · 129

Theory 58/Averaging removes noise

Averaging Creates Artefacts

The claim

Averaging over heterogeneous units can create patterns that exist in no unit, including spurious trends and thresholds.

01Mechanism

Aggregation mixes distributions with different shapes.

02Prediction

Aggregate patterns should vanish at unit level.

03Refutation

Patterns preserved under disaggregation would remove the artefact.