Which of the following statements are FALSE regarding error terms in a conceptual model?
A) There is an error term for each indicator variable.
B) An error term is included for a latent dependent construct because the specified independent variable constructs would never be expected to predict 100 percent of the variance in the dependent variable construct.
C) Error terms are represented by squares that are connected to the circles (indicator variables).
D) Errors are included in the conceptual model to represent the amount of variance not explained by the hypothesized relationships between the variables or constructs.
E) In some statistical techniques, the unexplained variance represented by the error terms is referred to as residual variance.

Question

Quizplus · Accepted Answer

Error terms are not represented by squares that are connected to the circles (indicator variables). In fact, error terms are typically represented by lines pointing towards the indicator variables, indicating that they influence the indicators but are not directly measured or observed.

Which of the Following Statements Are FALSE Regarding Error Terms