Imagine the circumstance where you are testing whether there is an association between "number of carrots consumed" and "blood pressure". Imagine further that you have reason to believe that the association between these two variables varies by age (for this example let's make age dichotomous, i.e. old vs. young). Perhaps you expect that the more carrots someone eats, the lower their blood pressure will be (negative association), but you think this will be more true for older people than younger (i.e. age moderates the effect of carrot consumption on blood pressure).
Since you'd expect that the association will probably still be negative in both groups, but more negative in older people (if your hypothesis is accurate), you might expect to see a graph like the one below:
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This graph is fairly typical of a two-way interaction, where the two groups (young vs. old) have differing slopes. Since both group's slopes are negative, it isn't supriising that the overall sample slope is also negative. However, imagine a slightly different scenario where younger people's slope was actually positive for some unknown reason. In this case, your graph would look like this:
In this scenario, you would still likely have significant moderation (probably an even strong interaction effect, since the difference in slope is even larger), however you might not see a significant association between the IV (carrots) and DV (Blood Pressure) in the sample as a whole. This example highlights the danger of relying only on correlations and failing to consider/test potential moderating effects. Thanks for the great question, Ken!
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