Question

Question 1 Structural Equation Modeling (SEM) examines a series of multiple regressions equations. True False Question 2 In structural Equation Modeling (SEM) terminology, a mediating variable is called as exogenous latent variable True False Question 3 Internal Consistency is not necessarily tested for reflective indicators. True False Question 4 If the structural model is complex (many constructs and indicators), we better select Partial Least Square- Structural Equation Modeling (PLS-SEM) instead of Covariance Based-Structural Equation Modeling (CB-SEM). True False Question 5 For Structural Model, the minimum criteria for factor loading is 0,5. True False

Answer 1

1.

True

2.

False

3.

True

4.

True

Use PLS-SEM when

• The goal is predicting key target constructs or identifying key “driver” constructs.
• Formatively measured constructs are part of the structural model. Note that formative measures can also be used with CB-SEM, but doing so requires construct specification modifications (e.g., the construct must include both formative and reflective indicators to meet identification requirements).
• The structural model is complex (many constructs and many indicators).
• The sample size is small and/or the data are nonnormally distributed.
• The plan is to use latent variable scores in subsequent analyses.

5.

False

To meet convergent validity criteria, factor loadings should be greater than 0.7.