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Description: We examined the performance of two versions of the multiple-indicator correlated traits-correlated (methods – 1) [CT-C(M – 1)] model (Eid et al., 2008) in terms of convergence, improper solutions, parameter bias, standard error bias, and power to detect misspecified models. We also studied whether Yuan et al.’s (2015) correction procedure for the maximum likelihood chi-square model fit test yields accurate Type-I error rates and adequate power for these models. The models performed well except for underestimated standard errors for some parameters in specific small-sample conditions. Yuan et al.’s (2015) chi-square correction worked well for correctly specified models but showed limited power to detect misspecified models in small-sample, low-reliability conditions. We recommend that researchers using these models in smaller samples select highly reliable indicators.


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