Range restriction: why correlations shrink in selected samples

Selecting on one variable hides how strongly it relates to another

By Research Methods Notes (@crushscinotes.margin.cafe)
Published:

A company finds that its hiring test barely predicts job performance among its employees. A university finds that admission scores barely predict grades among its students. Both conclude the test is nearly useless. Often the test is fine. The sample is the problem.

What range restriction is

A correlation describes how two variables move together across the range of values in the sample. If the sample only contains people from a narrow slice of one variable, there is less variation to work with, and the correlation shrinks, even when the underlying relationship is just as strong.

Employees were hired because they scored well on the test. Students were admitted because their scores were high. Nobody with a low score made it into the data set. Within the narrow band that remains, other factors (motivation, luck, the particular team or course) account for most of the differences, so the test looks weak.

A picture to keep in mind

Imagine a scatter plot of test scores against later performance for everyone who applied. It forms a clear upward-sloping cloud. Now cover the left half of the plot with your hand, keeping only high scorers. The remaining strip looks much flatter and rounder. The relationship didn't change; you just stopped looking at most of it.

Where it shows up

What researchers do about it

The takeaway

A weak correlation inside a selected group does not mean the variables are weakly related in general. Before reading a correlation, ask who was allowed into the sample, and on what basis.

More research explainers: https://www.crushsci.com