lecture6_s10 measurement - Consequences of measurement...

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Psychology 588: Covariance structure and factor models Feb 10, 2010 Consequences of measurement error
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Scaling indeterminacy of latent variables 2 Scale of a latent variable is arbitrary and “determined” by a convention for convenience Typically set to variance of one (factor analysis convention) or to be identical to an arbitrarily chosen indicator By centering indicator variables, we set latent variables’ means to zero Consider the following transformation: * * , 1,..., , , 0 j j j j j j j j x j J a b b a b b ν λ ξ δ ξ ξ λ ν λ ξ δ = + + = = + = + +
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