path analysis and stuff

Question 1

we add an independent error term 𝜺

Answer 1

to explain the variation in 𝑌 that is not explained by 𝑋 via the path coefficient denoted 𝛽

Question 2

Exogenous variables

Answer 2

Exogenous latent, and error terms / residuals

Question 3

endogenous variables - variance?

Answer 3

no they have residuals / disturbance term that have variance

Question 4

variance denoted as

Answer 4

theta = variance of exogenous residual

sigma squared = variance of exogenous variable

Question 5

We specify SEM models and estimate values for their parameters to

Answer 5

1. test hypotheses
   
   • about the overall model fit —> Exact model fit
   • and specific model parameters
2. reproduce observed covariances using the estimated model parameters
   
   • i.e., model-implied covariances

Question 6

to obtain the model-implied covariance

Answer 6

compute the product of coefficients in each route between the variables of interest