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Data preparation for use in SEM Ned Kock Data in table format Each column corresponds to a manifest variable. Some groups of columns correspond to a latent variable. Each row often contains the answers from one subject under a particular condition, and is also known as a “case”. Missing values A missing value is an empty cell in a data table. Missing values are a fact of life in many areas of research, including behavioral research. In terms of behavioral research, missing values may be present when: Respondents do not answer one or more questions in a questionnaire. A researcher empties a data cell when a respondent answers a question with non-usable data; e.g., by responding with a “0” (zero) when asked for his or her age. Examples of missing values Datasets with missing values are a common occurrence in behavioral research, as well as other types of research. Percentage of missing data A simple Excel formula can be used to calculate the percentage of missing data for a manifest variable. How much is too much? A recent Monte Carlo simulation suggests that as much as 30% may be okay. More than that can lead to problems. Supporting source: Kock, N. (2014). Single missing data imputation in PLS-SEM. Laredo, TX: ScriptWarp Systems. Dealing with missing values A first step is to make an effort to ensure that no more than 30% of the data is missing in each column of a data table. The above can be accomplished by employing data collection techniques that minimize missing data; e.g., targeted questionnaires and interviews. Then the remaining missing cells can be filled using one of the several imputation methods, such as: Arithmetic Mean Imputation Multiple Regression Imputation Hierarchical Regression Imputation Stochastic Multiple Regression Imputation Stochastic Hierarchical Regression Imputation Missing data imputation with WarpPLS Using deletion, listwise or pairwise, to deal with missing data: Researchers have traditionally used deletion methods, often listwis