Enhancing Model Fit Evaluation in SEM: Practical Tips for Optimizing Chi-Square Tests

Abstract

This paper aims to advocate for a balanced approach to model fit evaluation in structural equation modeling (SEM). The ongoing debate surrounding chi-square test statistics and fit indices has been characterized by ambiguity and controversy. Despite the acknowledged limitations of relying solely on the chi-square test, its careful application can enhance its effectiveness in evaluating model fit and specification. To illustrate this point, we present three common scenarios relevant to social and behavioral science research using Monte Carlo simulations, where fit indices may inadequately address concerns regarding goodness-of-fit, while the chi-square statistic can offer valuable insights. Our recommendation is to report both the chi-square test and fit indices, prioritizing precise model specification to ensure the reliability of model fit indicators.

Keywords:

• Chi-square test
• goodness-of-fit
• Monte Carlo simulation
• SEM