I am fairly new to statistics as a Phd student. I am trying to understand how dichotomizing a continuous variable can lead to distinct effects on two dependent variables.
So in a cross-sectional sample, I have one predictor (continuous) and two outcomes of interest (both continuous). Using linear regression, I found that predictor is significantly associated with outcome 1 but not outcome 2. Given that my predictor is a validated scale score, with specific cut-offs to create 2 categories, I then dichotimized the predictor to create a binary predictor_category variable. Using linear regression, I found that predictor_category has a significant effect on outcome 2 but not outcome 1.
I want to understand why this is happening? Why is the continuous predictor associated only with outcome 1 and why predictor_category is only associated with outcome 2? Even though predictor_category is derived from the continuous predictor.
I would appreciate any thoughts on this.
Edit: Adding two scatter plots below. I have centered my continuous predictor.