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SEM Episode 3: Factor Analysis

In this episode of Office Hours, Patrick continues his exploration of the structural equation model by introducing latent variables. ... He begins with a conceptual definition of a latent factor and describes how latent variables can be used to capture different kinds of effects in applied research settings. He then briefly explores the exploratory factor analysis (EFA) model and uses this framework to transition to the confirmatory factor analysis (CFA) model. He describes how CFA models can be specified, how the scale of the latent factor is established, and how the model can be evaluated and potentially respecified. He concludes with a review of the unique strengths of CFA how latent factors can be used in a fully latent structural equation model (SEM) that is the topic of the following episode in this series. Bollen, K. A. (2002). Latent variables in psychology and the social sciences. Annual Review of Psychology, 53, 605-634. Thompson, B. (2004). Exploratory and confirmatory factor analysis: Understanding concepts and applications. American Psychological Association.