"How Big Is Big Enough?": Sample Size and Goodness of Fit in Structural Equation Models with Latent Variables

• Published in: Child development Vol. 58; no. 1; pp. 134 - 146
• Main Author: Tanaka, J. S.
• Format: Journal Article
• Language: English
• Published: Chicago, etc University of Chicago Press 01-02-1987; University of Chicago Press for the Society for Research in Child Development, etc
• Subjects: Covariance; Covariance matrices; Data sampling; Entropy; Estimation methods; Estimators; Modeling; Sample size; Statistics; Structural equation models; Technical and Special Issues
• ISSN: 0009-3920; 1467-8624
• DOI: 10.2307/1130296

The large-sample statistical theory for latent-variable structural equation models offers little solace to the developmental psychologist, who is often confronted with less than optimally large sample sizes. This article reviews previously proposed alternatives to the sample-size and goodness-of-fit issue in latent-variable structural equation models. Various nonparametric fit indices for latent-variable systems are reviewed with their strengths and weaknesses discussed. An alternative estimation strategy called ME2 estimation is introduced as a possible alternative solution to the small-sample problem.