Do I have to put error variables on reflective indicators using Smart PLS?

08 March 2023 1 2K Report

In a reflective measurement model, each indicator has some level of unexplained variance (error). Normally, it is drawn as a circle pointing to the observed indicator. Using Smart PLS, do I have to put the error variable in my model, or does Smart PLS assume it’s existence?

Christian M. Ringle

Michael Pettit , that's not needed (1 - the squared loading is the unexplained variance in the indicator). Here you find further info on PLS-SEM: Chapter Partial Least Squares Structural Equation Modeling

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