Effect of Dichotomization on the Latent Structure of Data

We investigated whether dichotomous data showed the same latent structure as interval-level from which they originated. Given constancy of dimensionality and factor loadings reflecting data, focus was on variance variable a confirmatory model. This shown to summarize information provided by loadings. The results simulation study did not reveal exact correspondence variances variables derived but shrinkage. Since shrinkage occurred systematically, methods for recovering original were fleshed out evaluated.