Abstract

The purpose of this study is to explore the impact of constraining class-specific residual variances to be equal by examining and comparing the parameter estimation of a free model and a constrained model under various conditions. A Monte Carlo simulation study was conducted under several conditions, including the number of predictors, class-specific intercepts, sample size, class-specific regression weights, and class proportion to evaluate the results for parameter estimation of the free model and the restricted model. The free model yielded a more accurate estimation than the restricted model for most of the conditions, but the accuracy of the free model estimation was impacted by the number of predictors, sample size, the disparity in the magnitude of class-specific slopes and intercepts, and class proportion. When equality constraints were imposed in residual variance discrepant conditions, the parameter estimates showed substantial inaccuracy for slopes, intercepts, and residual variances, especially for those in Class 2. When the residual variances were equal between the classes, the restricted model showed better performance under some conditions.