I need to do an SEM and I'm stumped about what to do with one of my variables, which is a nominal categorical variable (previous experience in x vs. no previous experience in x). It is the only observed variable for the latent variable it is attached to. The rest of the variables in my model are measured with continuous indicators and I am parceling some of them to create multiple observed variables that equally represent the underlying concept. What is the best way to code the nominal variable in my model? I have scoured my SEM books and I can't find anything on this. There are some mentions of dummy coding, but there is no guidance on how you actually do this. I am using AMOS. Also, I can't figure out how I could possibly parcel the variance for the indicator since there is only one item and you can't do a CFA on one item. Basically, I am stumped and would be extremely grateful if anyone could provide some clarification.