Latent Variable Index

Frequently asked questions about PLS path modeling.
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groschenka
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Latent Variable Index

Post by groschenka »

Hi!
I have seen in one article that it is also possible to estimate an index for each of the latent variable. The digit was rather high (e.g. 61 or 70). Does somebody know how it can be calculated?
Thank you very much in advance
Btw: the name of the article "Drivers of student satisfaction and loyalty at different levels of higher education." by Peder Ostergaard and Kai Kristensen Aarhus School of Business
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cringle
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Post by cringle »

Hi,

you must rescale the manifest variables. Good explanations on index values are provided by academic literature, e.g. Kristensen, Kai /Martensen, Anne/Grønholdt, Lars (2000) or Martensen, Anne / Grønholdt, Lars (2003), see viewtopic.php?t=21.

Best
Christian
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