Factor analysis is widely utilized to identify latent factors underlying the observed variables. This paper presents a comprehensive comparative study of two widely used methods for determining the optimal number of factors in factor analysis, the K1 rule, and parallel analysis, along with a more recently developed method, the bass-ackward method.…

Data in social and behavioral sciences typically contain measurement errors and also do not have predefined metrics. Structural equation modeling (SEM) is commonly used to analyze such data. This article discuss issues in latent-variable modeling as compared to regression analysis with composite-scores. Via logical reasoning and analytical results…