1. The General LISREL Model Ulf H. Olsson

2. Making Numbers Loyalty Branch Loan Savings Satisfaction

3. Ulf H. Olsson Making Numbers-Econometric Model

4. Ulf H. Olsson Making Numbers-Psychometric Model

5. Ulf H. Olsson Making Numbers-Psychometric Model

6. Ulf H. Olsson Parameter Function

7. Ulf H. Olsson Making Numbers S: sample covariance θ: parameter vector σ(θ): model implied covariance

8. Ulf H. Olsson Making Numbers

9. Ulf H. Olsson Making Numbers

10. Ulf H. Olsson Making Numbers

11. Ulf H. Olsson Making Numbers

12. Ulf H. Olsson Making Numbers Generally

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

14. Ulf H. Olsson Making Significance 0; correctly specified K ; misspecified

15. Ulf H. Olsson Making Significance (Sense)

16. Ulf H. Olsson Making Sense If the model is correctly specified, different estimators should have similar values asymptotically (White, 1994) If the different estimators do not have similar values asymptotically, the model is misspecified 1) Use at least two estimators; if they differ the model is misspecified; 2) Across-method variability can be used to assess what parts of the model, if any,are close to the true model??

17. Ulf H. Olsson Making Sense A strong theory will give precise predictions!

18. Ulf H. Olsson Making sense is more important than making numbers, it is even more important than making significance ?