Demonstration of How Score Reliability is Integrated into SEM with Multiple Exogenous Latent Variables

Abstract

Yetkiner and Thompson (2010) demonstrated, within a Structural Equation Model (SEM) framework,  that Spearman’s (1910) corrected correlation coefficient generalized to the case of multiple manifest  indicators. In the current study, the argument was taken a step further by demonstrating the effect of unreliable measurement on structural parameters in a three-variable SEM model. In general, the results from this study are in accord with previous findings, but there are considerable variations depending on the mix of high and low reliability specifications.