Measurement versus Residual Error Terms
In Structural Equation Modeling (SEM), measurement errors are those errors that occur in your items/questions in a questionnaire while measuring a latent variable. Each of these items is assigned a unique item error/measurement error to take care of the flaws or discrepancies that may have arisen in your measurement instruments.
Residual Errors also called disturbance terms are the errors that arise in the prediction of an endogenous variable by an exogenous variable. Below is a diagrammatical illustration of measurement and residual error terms in a SEM model.
