On 2/4/03 2:25 PM, in article
3B4D60A9CF29C349B185DC404F988D1002290F13@MAIL2A, "Wuensch, Karl L"
<[EMAIL PROTECTED]> wrote:

> Thanks to all who have participated in the discussion on
> dichotomization.  I have logged selected parts of the discussion into a
> document for both my students and my colleagues to read.  It is available at
> http://core.ecu.edu/psyc/wuenschk/StatHelp/Dichot-Not.doc
> <http://core.ecu.edu/psyc/wuenschk/StatHelp/Dichot-Not.doc>  .  If any of
> you would rather not have your comments included in that document, please
> let me know.
> 

I've put together a Java applet that illustrates the issues.

   http://psych.colorado.edu/~mcclella/MedianSplit/

There is a slider that allows you to move the values of X smoothly from the
continuous analysis to the dichotomized analysis.  Doing so you can see that
as the variance of X is thereby reduced, the correlation is reduced, but the
estimate of the slope remains unbiased.  The effect of dichotomization is
simply to reduce statistical power.  If X is normally distributed, the
effect of dichotomization is equivalent to discarding a random 50%
(approximately) of one's observations.  I can't imagine why anyone would
want to do that.

Note:  to use the above applet, PC users will need to have downloaded Sun's
Java plug-in to replace the crippled Java that Microsoft distributes.  Mac
users will need to be using OS X.

gary

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