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Confirmatory factor analysis with ordinal data: Comparing robust maximum likelihood and diagonally weighted least squares
Open accessAbstract
In confirmatory factor analysis (CFA), the use of maximum likelihood (ML) assumes that the observed indicators follow a continuous and multivariate normal distribution, which is not appropriate for ordinal observed variables. Robust ML (MLR) has been introduced into CFA models when this normality assumption is slightly or moderately violated. Diagonally weighted least squares (WLSMV), on the other hand, is specifically designed for ordinal data. Although WLSMV makes no distributional assumptions about the observed variables, a normal latent distribution underlying each observed categorical variable is instead assumed. A Monte Carlo simulation was carried out to compare the effects of different configurations of latent response distributions, numbers of categories, and sample sizes on model parameter estimates, standard errors, and chi-square test statistics in a correlated two-factor model. The results showed that WLSMV was less biased and more accurate than MLR in estimating the factor loadings across nearly every condition. However, WLSMV yielded moderate overestimation of the interfactor correlations when the sample size was small or/and when the latent distributions were moderately nonnormal. With respect to standard error estimates of the factor loadings and the interfactor correlations, MLR outperformed WLSMV when the latent distributions were nonnormal with a small sample size of N = 200. Finally, the proposed model tended to be over-rejected by chi-square test statistics under both MLR and WLSMV in the condition of small sample size N = 200.
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“The Diagonally Weighted Least Squares (DWLS) estimator with robust standard errors and a scaled/shifted test statistic was selected, as recommended for ordered categorical (Likert-scale) data [50], [51].”
From Enhancing Digital Financial Literacy and Digital Trust for Sustainable Online Loan Adoption among Micro-Entrepreneurs in Developing Economies (2026) · cites this paper as [50]
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“DWLS does not assume multivariate normality of indicators and provides more accurate parameter estimates for ordinal data compared with maximum likelihood-based estimators.”
From Enhancing Digital Financial Literacy and Digital Trust for Sustainable Online Loan Adoption among Micro-Entrepreneurs in Developing Economies (2026) · cites this paper as [50]
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Metadata
- Authors
- Li, C.-H.
- Affiliations
- The University of Texas Health Science Center at Houston (US)
- Corresponding author
- Li, Cheng-Hsien
- Venue
- Behavior Research Methods
- Published
- 2015-07-15
- Volume
- 48
- Issue
- 3
- Pages
- 936-949
- ISSN
- 1554-351X (ISSN-L)
- 1554-3528
- OpenAlex
- W1819467863
- Cited by
- 3,031
- References
- 53
- Citations by year
- 2026: 555 · 2025: 391 · 2024: 407 · 2023: 402 · 2022: 353 · 2021: 366 · 2020: 242 · 2019: 145 · 2018: 94 · 2017: 56 · 2016: 17
- FWCI
- 69.36
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Licence
- www.springer.com/tdm (tdm)
- Locations
- Behavior Research Methods (publishedVersion)
- PubMed (publishedVersion)
- Topics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Psychometric Methodologies and Testing
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Bayesian Inference
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Distribution Estimation and Applications
- Keywords
- confirmatory factor analysis, ordinal data, non-normality, factor loadings, chi-square test, small sample size, categorical indicators
- MeSH terms
- Data Interpretation, Statistical, Factor Analysis, Statistical, Humans, Monte Carlo Method, Models, Statistical, Chi-Square Distribution, Likelihood Functions, Least-Squares Analysis, Sample Size
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