What is Latent Variable

Scale development is an important step in empirical research. This chapter describes the common procedures to follow in scale development with essential factor analytical methods. The concept of measurement invariance, the importance of its testing prior to group comparisons, and testing procedures are discussed. Single-group, multi-group, and hierarchical confirmatory factor analytical methods and associated decision making are described. Procedural steps in scale development and measurement invariance testing are illustrated at length using a real dataset in stereotype threat and principals' leadership style in the United States.