Dear Dr. Bruce and my peers,
Accroding to Cooper, D. & Schindler p.540 Structural Equation Modeling(SEM) must include 5 steps below:
1. Model specification: The first step in SEM is the specification, or formal statement, of the model’s parameters. These parameters, constants that describe the relations between variables, are specified as either fixed or free. Fixed parameters have values set by the researcher, and are not estimated from the data. For example, if there is no hypothesized relationship between variables, the parameter would be fixed at zero.
2. Estimation: After the model has been specified, the researcher must obtain estimates of the free parameters from the observed data. This is often accomplished using an iterative method, such as maximum likelihood estimation (MLE).
3. Evaluation of fit: Following convergence, the researcher must evaluate the goodness-of-fit criteria. Goodness-of-fit tests are used to determine whether the model should or should not be rejected. If the model is not rejected, the researcher will continue the analysis and interpret the path coefficients in the model. Most, if not all, SEM computer software programs include several different goodness-of-fit measures, each of which can be categorized as one of three types of measures.
4. Respecification of the model: Model respecification usually follows the estimation of a model with indications of poor fit. Sometimes, the model is compared with competing or nested models to find the best fit among a set of models, and then the original model is respecified to produce a better fit. Respecifying the model requires that the researcher fix parameters that were formerly free or free parameters that were formerly fixed.
5. Interpretation and communication: SEM hypotheses and results are most commonly presented in the form of path diagrams, which are cally illustrated of the measurement and structural models. The main features of path diagrams are ellipses, rectangles, and...