The perfunctory use of factor scores in conjunction with regression analysis is inappropriate for many purposes. It is suggested that factoring methods are most suitable for independent variable sets when some consideration has been given to the nature of the domain, which is implied by the predictors. (Author/BW)

Ridge regression offers advantages over ordinary least squares estimation when a validity shrinkage criterion is considered. Comparisons of cross-validated multiple correlations indicate that ridge estimation is superior when the predictors are multicollinear, the number of predictors is large relative to sample size, and the population multiple…

It is generally believed that the correction formula will yield exact correlational values only when the regression of z on x is both linear and homoscedastic. The formula is shown to hold for nonlinear heteroscedastic relationships. A simple sufficient condition for formula validity and estimation predictions is demonstrated in a numerical…

This paper presents two major criticisms of the construct validity investigation of the McCarthy Scales of Children's Abilities conducted by Watkins and Wiebe (1980). The criticisms pertain to the nature of the data presented and the accuracy and appropriateness of the statistical procedures employed. (BS)

To determine if the observed correlation between two variables can be "explained" by a third variable, a significance test on the partial correlation coefficient is often used. This can be misleading when the third variable is measured with error. This article shows how the problem can be partially overcome. (Author/BW)

Factor scale scores are sometimes used as weights to create composite variables representing the variables included in a factor analysis. If these composite variables are then used to predict some dependent variable, serious theoretical and methodological problems arise. This paper explores these problems and suggests strategies for circumventing…