Structural Equation Modeling - Basic

8 important questions on Structural Equation Modeling - Basic

What are latent variables?

Latent variables are variables that can not directly be observed or measured. Think of the example of quality of live.

What is a reflective measurement theory?

A reflective measurement theory is based on the idea that latent constructs cause the measured variables and that the error results in an inability to fully explain these measured variables. Thus, the arrows are drawn from latent constructs to measured variables. As such, reflective measures are consistent with classical test theory

How is the Dillon-Goldstein's Rho also called?

  • Jöreskog's rho,
  • factor reliability,
  • McDonald's omega
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What does Dillon-Goldstein's rho measure?

  • It measures the reliability of a set of indicators.
  • Between 0 and 1
  • Applicable to generic measurement models.
  • Estimates the reliability of Sum Scores

What does Dijkstra-Henseler's Rho measure?

  • Measures the reliability of a composite as created by PLS mode A
  • Between 0 and 1
  • Applicable to generic measurement models.

How should the structural model be interpreted?

  • Higher than 0.35: Strong effect
  • Higher than 0.15: Moderate effect
  • Higher than 0.02: Weak effect

What are the two types of Mediation?

  • Full mediation: The independent variable does not have a significant effect on the dependent variable after the inclusion of the mediator variable.
  • Partial mediation: The independent variable has still a significant direct effect on the dependent variable.

What are the two forms of partial mediation?

  • Complementary mediation: Direct and indirect effect have the same sign.
  • Competitive mediation: Direct and indirect effect have different signs.

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