I am new in Mplus and SEM. May be it is too naive to ask, but why there is only one coefficient for a categorical predictor variable which has five categories. In usual regression, dont we have n-1 (in this case four) coefficients comapared to a base category?
How do we interpret the sole coefficient in this situation? Please note, I have used WLSMV estimator and the categorical variable under discussion is used both as predictor and endogenous.
You have to create a set of binary dummy variables from your nominal predictor; this is not automatically done by Mplus. Also, the Categorical= and Nominal= lists are for DVs only, not for IVs( predictors).
Thank you for your reply. I have replaced original categorical variables each with n-1 dummies. But it results in two problems, a) standard errors and p value can't be determined, b) model doesnt converge unless forced. Just wanted to confirm if I didn't anything wrong.
1. Replaced original categorical variables with corresponding n-1 dummies 2. Declared categorical for the endogenous variables. For example, if X and Z are two endogenous categorical variables, I declared