GRA 6020 Multivariate Statistics The Structural Equation Model

GRA 6020 Multivariate Statistics The Structural Equation Model Ulf H. Olsson Professor of Statistics

Measurement Models • Consequences of Measurement Error • Biased estimates • Does the Model fit the Data • The Chi-square test • The RMSEA approach • Detailed evaluation of the model • t. -values • Reliability • Validity Ulf H. Olsson

Cronbach’s alpha One can see from this formula that if you increase the number of items, you increase Cronbach's alpha. Additionally, if the average inter-item correlation is low, alpha will be low. As the average inter-item correlation increases, Cronbach's alpha increases as well. Ulf H. Olsson

Composite Reliability measure Ulf H. Olsson

Making Numbers Branch Loan Satisfaction Loyalty Savings Ulf H. Olsson

Making Numbers Branch Loan Savings 0. 40 0. 39 0. 33 0. 44 0. 37 0. 33 0. 46 0. 29 0. 17 0. 35 Satisfaction 0. 80 0. 83 0. 86 0. 83 0. 84 Loyalty • Chi-sq. • 1769. 36 • 925. 78 • 1731. 09 • 839. 83 • 518. 94 • 582. 91 • df=182 0. 26 0. 23 0. 21 0. 28 0. 23 Ulf H. Olsson

STATISTICAL SYMBOLS - NOTATION Ulf H. Olsson

Making Numbers-Econometric Model Ulf H. Olsson

Making Numbers-Psychometric Model Ulf H. Olsson

Making Numbers-Psychometric Model Ulf H. Olsson

CFA and SEM Ulf H. Olsson