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Structural equation models describe relationships between variables. They are similar to combining multiple regression and factor analysis and also offer some important, additional benefits over these techniques including an effective way to deal with multicollinearity, and methods for taking into account the unreliability of consumer response data
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valuei = a *qualityi + b *costi + errori
Structural equation models describe relationships between variables. They are similar to combining multiple regression and factor analysis and also offer some important, additional benefits over these techniques including an effective way to deal with multicollinearity, and methods for taking into account the unreliability of consumer response data. This paper introduces you to SEMs as well as Amos, a software tool distributed by SPSS Inc. Amos stands for “Analysis of Moment Structures.” Amos has a unique graphical interface, and was specifically designed to make fitting SEMs easier.
