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10 months ago in Conceptualization By Hema

Describe how you establish discriminant validity in SmartPLS using the Fornell-Larcker criterion and the Heterotrait-Monotrait (HTMT) ratio.

Explain how discriminant validity is established in SmartPLS using both the Fornell-Larcker criterion and the Heterotrait-Monotrait (HTMT) ratio.

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By Malvika Mathur Answered 8 months ago

To establish discriminant validity in SmartPLS, two primary criteria are used. First, the Fornell-Larcker criterion requires the square root of each construct's Average Variance Extracted (AVE) (shown on the diagonal of the correlation matrix) to be greater than its highest correlation with any other construct. Second, the Heterotrait-Monotrait (HTMT) ratio of correlations should be below 0.85 (strict) or 0.90. Meeting both criteria confirms that each construct is distinct from the others in the model.  

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