Indicators of a latent variable and scale

Questions about the implementation and application of the PLS-SEM method, that are not related to the usage of the SmartPLS software.
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Francisco
PLS Junior User
Posts: 9
Joined: Fri Sep 15, 2017 8:03 am
Real name and title: Francisco Manuel

Indicators of a latent variable and scale

Post by Francisco »

Hello,

Two questions:

- A dependent variable with four indicators, after applying the measurement model I have been left with only one indicator, what could this be due to?

- I have a model with likert scale variables and a continuous variable, can I run the model or do I have to transform it to a categorical variable?

Thank you
leighking
PLS Junior User
Posts: 1
Joined: Tue Oct 31, 2023 5:09 pm
Real name and title: Leigh King

Re: Indicators of a latent variable and scale

Post by leighking »

Francisco wrote: Sat Oct 28, 2023 10:59 am Hello,

Two questions:

- A dependent variable with four indicators, after applying the measurement model I have been left with only one indicator, what could this be due to?
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- I have a model with likert scale variables and a continuous variable, can I run the model or do I have to transform it to a categorical variable?

Thank you
If you have a dependent variable with four indicators and after applying the measurement model, you are left with only one indicator, it could be due to a variety of reasons. One possibility is that the indicators are highly correlated, which can lead to multicollinearity issues. Another possibility is that the indicators are not measuring the same construct, which can lead to construct under-representation. You may want to consider examining the factor loadings of each indicator to see if they are measuring the same construct. Additionally, you may want to consider examining the correlations between the indicators to see if they are highly correlated.

You can run a model with likert scale variables and a continuous variable without transforming it into a categorical variable. However, it is important to note that likert scale variables are ordinal in nature and do not have equal intervals between categories. Therefore, treating them as continuous variables can lead to issues with interpretation and statistical analysis. One way to address this issue is to use ordinal regression models, such as proportional odds models or partial proportional odds models. These models take into account the ordinal nature of the data and can provide more accurate results.
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