Affiliations 

  • 1 Georgia State University, P.O. Box 3991, Atlanta, GA, 30302-3991, USA. erigdon@gsu.edu
  • 2 University of Cologne, Cologne, Germany
  • 3 Otto-von-Guericke-University Magdeburg, Magdeburg, Germany
Psychometrika, 2019 09;84(3):772-780.
PMID: 31292860 DOI: 10.1007/s11336-019-09677-2

Abstract

Parceling-using composites of observed variables as indicators for a common factor-strengthens loadings, but reduces the number of indicators. Factor indeterminacy is reduced when there are many observed variables per factor, and when loadings and factor correlations are strong. It is proven that parceling cannot reduce factor indeterminacy. In special cases where the ratio of loading to residual variance is the same for all items included in each parcel, factor indeterminacy is unaffected by parceling. Otherwise, parceling worsens factor indeterminacy. While factor indeterminacy does not affect the parameter estimates, standard errors, or fit indices associated with a factor model, it does create uncertainty, which endangers valid inference.

* Title and MeSH Headings from MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine.