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I've been talking to a friend and he says that "yes, statistically, most people improve the day of the test." Apparently, this view is held by quite a few people. Despite my general skepticism that there actually is a statistic supporting that, what have you all found? Is this a myth or not?

A myth for most people.

I actually dropped a couple points from my PTs, probably due to the marching band outside and freaking out about the June dinosaur game.

Myth. After having taken a prep course twice and the test, twice... it seems that most people drop 2-5 points from their highest scoring PT. In fact, the instructors for my prep told us that that is what we should expect. It happened to me and most of the friends I had made in my prep class.

I heard the opposite... that you can expect around a 5 pt. drop from your average practice score on test day (very true for me)

Practice tests ranged from 171-175. Scored a 169.

I thought that most people drop a couple of points when taking the real test.

Probably a myth for most people on this message board. People who study/practice test half-heartedly will surely benefit from the increased focus that test-day pressure enables. People who are motivated enough to study and put pressure on themselves to do well in PT's probably aren't going to do much better IMO - probably worse, if anything.

ranged 169-175, average 171. scored 176. never finished lg section except on test day

It would be helpful to specify which improvement you are talking about - relatively to practice tests or to the score you had before doing any prep? If its the latter, than there is not doubt that most people do improve.