Variable rated between 1 to 7

[MaFa]

Hi all,

Do you know how we should include a variable that has been rated by survey respondents (e.g. from 1 to 7) in SEM as a moderator? Will this be considered as categorical? The variable can represent two situations actually; low values, for example, represents situation 1 and high values show situation 2.
I appreciate any help.
Thanks

[jmbecker]

Usually, researchers treat those 7-point Likert scales as quasi-metric and thus continuous. That would suggest using an interaction effect approach. In contrast, dichotomization using high and low values, for example, using a median split might lose information and is generally seen less favorably.
When you really think it is categorical, you would want to treat each category as a separate group.