I am currently doing a research and recently encountered a few statistical concerns. I am basing this question on the following post.
My question is quite similar to the above-mentioned one but has some important differences. I designed a survey in order to get data from participants. This survey had 12 different items (ranked on a scale from 0 "minor importance" to 10 "major importance").
Before constructing my independent variables with these 12 items, I decided to get rid of the items that do not display a linear relationship with the dependent variable (the latter being a continuous value between 0 and 100).
After having done that, I am left with 10 items and I decide to create 3 independent variables. Each of the latter is constructed with some underlying items, based on a logical link between the items (i.e. the items referring to volatility are put together, the one referring to performance are put together...)
When constructing the variables, I decided to use the mean between the underlying items—for example, performance = (item1 + item2)/2.
My question is the following: I need to justify each step from a "mathematical" perspective with some references. For example, I know there is a unsettled debate for the use of ordinal data in regressions but fellow researchers argued that my data can be considered as interval, especially after using the mean between the items.
My question is the following: Is this mathematically ok? Also if you can cite work that did more or less the same, or that can mathematically support my steps, that would be greatly appreciated.
Thank you!