Suppose that the observed correlation between parental absen

Suppose that the observed correlation between parental absenteeism and juvenile delinquency is r = .50. If you were to measure parental absenteeism and delinquency using 3 indicators each, then obtain a correlation between absenteeism and delinquency constructs, would this latent correlation be larger or smaller than the observed .50 correlation? Why?

Solution

After including indicator varaibles the correlaiton between absenteesim and delinquency is larger than the observed 0.05 correlation.