Correcting the t statistic for measurement error

Srinivas Durvasula (), Subhash Sharma () and Kealy Carter ()

Marketing Letters, 2012, vol. 23, issue 3, 682 pages

Abstract: Studies in marketing often involve application of multi-item scales to measure latent constructs. Once the psychometric properties of a scale have been assessed, responses to individual scale items are often summed to form a composite score, which then is compared across groups by performing statistical tests such as a t test. In this note, we draw researchers’ attention to an often overlooked fact that the t test is attenuated by imperfect measures. As a solution, we propose the disattenuated t statistic and discuss how it would increase accuracy of estimates and affect decisions in the marketing discipline. Copyright Springer Science+Business Media, LLC 2012

Keywords: Methodology; testing of group means; Disattenuated t statistic; Composite scale scores; t statistic (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1007/s11002-012-9170-9

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