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Unobserved Variables
Model A
The following path diagram presents a model for the eight subtests:
Four ellipses in the figure are labeled knowledge, value, satisfaction, and performance.
They represent unobserved variables that are indirectly measured by the eight split-half
tests.
Measurement Model
The portion of the model that specifies how the observed variables depend on the
unobserved, or latent, variables is sometimes called the measurement model. The
current model has four distinct measurement submodels.
1knowledge
2knowledge
1value
2value
1satisfaction
2satisfaction
1performance
2performance
knowledge
value
satisfaction
performance
error1
error2
error8
error7
error6
error5
error4
error3
1
1
1
1
1
1
1
1
1
1
1
1
error9
1
Example 5: Model A
Regression with unobserved variables
Job performance of farm managers
Warren, White and Fuller (1974)
Standardized estimates