The EV Scaling Method for Variances of Latent Variables

Abstract

Abstract. The paper describes EV scaling for variances of latent variables included in confirmatory factor models. EV-scaled variances can be achieved in two ways: the estimation of variance parameters based on adjusted factor loadings and alternatively the summation of squared factor loadings obtained under the condition that the variance parameter is set equal to one. By definition, the second procedure yields values that are always positive. EV-scaled variances of latent variables show sizes similar to eigenvalues. The outcome of applying this scaling method is demonstrated in empirical data. The results of a simulation study reveal that the outcomes of the two ways virtually always correspond if the data are generated to include the contribution of a latent source. If there is no such source, the exclusion of solutions with negative error variances virtually always leads to correspondence.