Which of the following principle is used by parsimonious fit indices?

Correct option is A

Parsimonious fit indices (e.g., PNFI, PGFI, PCFI) in structural equation modeling reward simpler models with fewer estimated parameters over complex ones, provided fit is comparable. This directly reflects Occam's razor — "entities should not be multiplied beyond necessity," i.e., prefer the simplest adequate explanation.
Information Booster:
1. Parsimony indices penalize models for having too many freely estimated parameters.
2. They are used to compare competing models with differing complexity, not to judge a single model in isolation.
3. Common parsimonious indices: PNFI (Parsimonious Normed Fit Index), PGFI (Parsimonious Goodness of Fit Index).
4. A more complex model can almost always fit data better; parsimony indices guard against overfitting.