Kano (this volume) states that it is possible to obtain an accurate estimate of disattenuated correlation even when the number of items per construct is small. This statement seems to support the common practice in the use of structural equation models (SEM) in which the number of indicator variables per construct are kept very small in order to insure a high degree of model fit. The present paper points out that latent variables with a small number of indicator variables tend to suffer from low generalizability and low validity, and thereby impair the value of the research finding. This issue exemplifies the fact that the relevance of goodness of model fit should be critically examined in reference to the purpose of research. An issue of the correction for attenuation is also examined in some detail in order to understand the nature of the correction implemented in the SEM framework.