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The General LISREL Model

The General LISREL Model. Ulf H. Olsson Professor of statistics. ESTIMATORS. If the data are continuous and approximately follow a multivariate Normal distribution, then the Method of Maximum Likelihood is recommended.

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The General LISREL Model

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  1. The General LISREL Model Ulf H. Olsson Professor of statistics

  2. ESTIMATORS • If the data are continuous and approximately follow a multivariate Normal distribution, then the Method of Maximum Likelihood is recommended. • If the data are continuous and approximately do not follow a multivariate Normal distribution and the sample size is not large, then the Robust Maximum Likelihood Method is recommended. This method will require an estimate of the asymptotic covariance matrix of the sample variances and covariances. • If the data are ordinal, categorical or mixed, then the Diagonally Weighted Least Squares (DWLS) method for Polychoric correlation matrices is recommended. This method will require an estimate of the asymptotic covariance matrix of the sample correlations. Ulf H. Olsson

  3. Ordinal Variables • In practice, observed or measured variables are often ordinal • However, ordinality is often ignored and numbers such as 1,2,3, etc. representing ordered categories, are treated as continuous variables. But, this is incorrect! Ulf H. Olsson

  4. Branch Loan Satisfaction Loyalty Savings Making Numbers Ulf H. Olsson

  5. Making Numbers-Econometric Model Ulf H. Olsson

  6. Making Numbers-Psychometric Model Ulf H. Olsson

  7. Making Numbers-Psychometric Model Ulf H. Olsson

  8. Parameter Function Ulf H. Olsson

  9. The Maximum Likelihood Estimator Ulf H. Olsson

  10. ML and RLS(NWLS) k is the number of manifest variables. D is the duplication matrix (Magnus and Neudecker 1988) and is the ML estimate. Ulf H. Olsson

  11. Drink and Drive case See word file: Drinkdrivecaseuke38.doc Ulf H. Olsson

  12. Ulf H. Olsson

  13. 0.33 0.33 0.46 0.29 0.17 0.35 Branch 0.40 0.39 0.33 0.44 0.37 0.37 0.80 0.80 0.83 0.86 0.83 0.84 Loan Satisfaction Loyalty 0.26 0.23 0.21 0.28 0.23 0.23 Savings Making Numbers Chi-sq. 1769.36 925.78 1731.09 839.83 518.94 582.91 df=182 Ulf H. Olsson

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