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Saturday, January 2, 2010

Solve collinearity problems in WarpPLS: YouTube video

A new YouTube video for WarpPLS is available; please see link below.

http://www.youtube.com/watch?v=avPWO324E0g

The video shows how problems associated with latent variable collinearity, suggested by unstable path coefficients and high variance inflation factors, can be solved in a structural equation modeling (SEM) analysis using the software WarpPLS.

Note that this type of problem is different from problems related to indicators having low loadings and high cross-loadings. The problem here is associated with collinearity among latent variables.

Having said that, in many cases these two types of problems happen together: latent variable collinearity (often referred to as multicollinearity) and poor loadings/cross-loadings.

Happy New Year!

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