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Example 6
Text Output
The added covariance between eps1 and eps3 decreases the degrees of freedom by 1.
The chi-square statistic is reduced by substantially more than the promised 40.911.
Model B cannot be rejected. Since the fit of Model B is so good, we will not pursue the
possibility, mentioned earlier, of allowing eps2 and eps4 to be correlated. (An
argument could be made that a nonzero correlation between eps2 and eps4 should be
allowed in order to achieve a symmetry that is lacking in the Model B.)
The raw parameter estimates must be interpreted cautiously since they would have
been different if different identification constraints had been imposed.
Chi-square = 6.383
Degrees of freedom = 5
Probability level = 0.271