Error in Variables – Analysis of Covariance Structure
In this chapter, we bring together the notions of measurement error discussed in Chapters 3 and 4 with the structural modeling of simultaneous relationships presented in Chapter 6. We will demonstrate that a bias is introduced when estimating the relationship between two variables measured with error if that measurement error is ignored. We will then present a methodology for estimating the parameters of structural relationships between variables which are not observed directly: analysis of covariance structures. We will discuss especially the role of the measurement model as discussed in the chapter on the confirmatory factor analytic model.