I'm using lavaan to test two mediation models: one with an observed variable as the mediator and one with a latent variable (3 indicators) as the mediator. In both models X is binary and Y is continuous. I have 130 observations, used FIML and bootstrap CI. As both mediators are related (r=0.58), it may be better to test a single model with two mediators instead of separate single-mediator models. This would be a more parsimonious solution. However, I find it hard to decide whether this is also a good idea given my limited sample size that affects the power and possibly the precision of the estimates. Below the results of the different models:
Model A: observed mediator M1
- path a: beta = -0.24
- path b: beta = -0.11
- path c': beta = 0.30
- indirect effect: estimate = 0.23 (95% CI -0.11, 1.01)
- direct effect: estimate = 2.51 (95% CI 1.22, 4.14)
Model B: latent mediator M2
- path a: beta = -0.50
- path b: beta = -0.53
- path c': beta = 0.07
- indirect effect: estimate = 2.21 (95% CI 0.70, 5.25)
- direct effect: estimate = 0.55 (95% CI -2.25, 2.31)
Model C: two mediators M1, M2
- path a1: beta = -0.50
- path b1: beta = -0.68
- path a2: beta = -0.25
- path b2: beta = 0.25
- indirect effect M1: estimate = 2.85 (95% CI 0.87, 9.73)
- indirect effect M2: estimate = -0.52 (95% CI -3.37, 0.08)
- total indirect effect: 2.33 (95% CI 0.73, 7.30)
- direct effect: 0.43 (95% CI -3.93, 2.37)
How can I decide whether model C suffers from the limited sample size? I see that the CIs for the indirect effects are wider, so the estimates are less precise. What else should I look at? I cannot find simulation studies in which the "cost" in power or the sample size requirements of adding an extra mediator to the model are explored.
Is there anyone who could give me an advise on this issue? Thanks a lot!