This is very relevant to predictions made based on group-based IQ scores in the case of individuals, such as expected tested achievement given a specific IQ score. It is all about the standard error of the estimate/prediction (SEest) which I have described in a number of Atkins declarations.
Showdown looming over predictive accuracy of actuarials
http://forensicpsychologist.blogspot.com/2013/01/showdown-looming-over-predictive.html
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