“…These issues become particularly salient when the manifest variables are dichotomous. Which correlation coefficients should be used and how the extracted factors should be interpreted are at present still problems without unequivocal answers (Ferguson, 1941 ;Wherry & Gaylord, 1944;Carroll, 1945Carroll, , 1961Gourlay, 1951 ;Dingman, 1958;Borgatta, 1965;Henrysson & Thunberg, 1965). I n the case of qualitative manifest variables it seems to be more appropriate to formulate a stochastic model of test behaviour within a factor analytic framework by borrowing terms from the latent structure model (Lazarsfeld, 1950;McDonald, 1962;Meredith, 1965).…”