The General LISREL MODEL and Non-normality Ulf H. Olsson Professor of Statistics
Ulf H. Olsson The General LISREL model Loyalty Branch Loan Savings Satisfaction
Ulf H. Olsson Syntax DA NI=? NO=??? MA=CM CM FI=?????.cov MO NX=? NY=?? NK=? NE=? BE=FU,FI PA LX Etc… PA LY 1 0 Etc… FR…… FI ….. pd ou
Ulf H. Olsson Bivariate normal distribution
Ulf H. Olsson Positive vs. Negative Skewness Exhibit 1 These graphs illustrate the notion of skewness. Both PDFs have the same expectation and variance. The one on the left is positively skewed. The one on the right is negatively skewed.
Ulf H. Olsson Low vs. High Kurtosis Exhibit 1 These graphs illustrate the notion of kurtosis. The PDF on the right has higher kurtosis than the PDF on the left. It is more peaked at the center, and it has fatter tails.
Ulf H. Olsson Non-normality ( Interval Scale continuous variables ) Skewness Kurtosis
Ulf H. Olsson Making Numbers S: sample covariance θ: parameter vector σ(θ): model implied covariance
Ulf H. Olsson Making Numbers
Ulf H. Olsson Making Numbers
Ulf H. Olsson Making Numbers
Ulf H. Olsson Making Numbers
Ulf H. Olsson Making Numbers Generally
Ulf H. Olsson ESTIMATORS Maximum Likelihood (ML) NWLS RML Generalized Least Squares (GLS) Asymptotic Distribution Free (ADF) Diagonally Weighted Least Squares(DWLS) Unweighted Least Squares(ULS)
Ulf H. Olsson 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 Estimation 1) No AC provided ML, GLS or ULS 2) AC provided ML WLS (ADF) DWLS