Arun, Guttman proposed 6 measures as lower bound estimates for reliability based on different assumptions. Lamda 3 is equal to Cronbachs alpha. This index is based on quite restrictive assumptions, such as tau-eqivalence which means that all covariances between the items should be equal. This assumption is not necessary for Lambda 2. Therefore Lambda 2 is on most cases more appropriate than Lambda 3. Unfortunately,
Lambda2 (Guttman, 1945) is a lower bound to the true reliability and equals the true reliability if the components are tau equivalent. Lambda2 is interesting because it always gives a lower bound that is as good as coefficient alpha but in some circumstances