A general formulation of the latent structure principle is suggested, from which it is possible to derive Lazarsfeld’s accounting equations in their most general form. The basic equations of Gibson’s latent profile model can thence be derived in a single step.

It is shown how the square root method can be used in the derivation of formulas in multiple prediction and in the computations necessary for their application. A formula derived by Horst indicates the validity a test must possess in order to contribute a specified amount to the multiple correlation of a battery. Then a formula is derived which relates the length of one test in a battery to the multiple correlation of the battery as a whole. The formulas hold for population parameters; in this paper, sampling theory is not discussed. A numerical example is presented; it is shown that one square root analysis provides all the data needed for the formulas.