Rafa Irizarry writes:
What do we call it when someone thinks cor(Y,X) = 0 because lim h -> 0 cor( X, Y | X \in (x-h, x+h) ) = 0
Example:
Steph, Kobe, and Jordan are average (or below average) height in the NBA so height does not predict being good at basketball.
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I can’t find a name for it.
My reply: I don’t know if there’s a name for it. It’s indeed a well known point—I guess that Gauss, Laplace, Galton, etc., knew about it. We make the point in the attached figure from my two books with Jennifer Hill. Here it is in Regression and Other Stories:

I’ll blog and see if anyone out there knows the name of the fallacy.
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