What are “replacing rules” for equivalent models?
• Does it matter which statistical package you use for structural equation modeling? • What is a “structural equation model”? A structural equation mode is a complete path model which can be depicted in a path diagram. It differs from simple path analysis in that all variables are latent variables measured by multiple indicators which have associated error terms, in addition to the residual error factor associated with the latent dependent variable. The figure below shows a structural equation model for two independents (each measured by three indicators) and their interactions (3 indicators times 3 indicators = nine interactions) as cause of one dependent (itself measured by three indicators). Each endogenous variable (the one ‘Dependent variable’ in the model below) has an error term, sometimes called a disturbance term or residual error, not to be confused with indicator error, e, associated with each indicator variable. Note: The crossproduct variables in the diagram above should n
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