Suppose, i want to test the impact of satisfaction (ordinal data/behavior which contains 5 items) on '"return on asset"" or ''Profitability'' (quantitative data, which is often taken from company's financial statements).. Which technique should i adopt to test for this type of data? I mean responses of satisfaction will fall in 1-5 categories but profitability of a company can take any amount in Dollars, euro etc. How to deal such kind of mixed data in SEM?
Dear Imtiaz, You can create a latent factor for satisfaction (which contains the 5 items = 5 observable variables) and then create a path (an unidirectional arrow) for Profitability (an observable variable + an error term). Good luck with your analysis!
Dear Imtiaz, You can create a latent factor for satisfaction (which contains the 5 items = 5 observable variables) and then create a path (an unidirectional arrow) for Profitability (an observable variable + an error term). Good luck with your analysis!
Dear Imtiaz, You can create a latent factor for satisfaction (which contains the 5 items = 5 observable variables) and then create a path (an unidirectional arrow) for Profitability (an observable variable + an error term). Good luck with your analysis!
- Badges
- Science topic
- Similar topics
- Medicine
- Physiology
- Biosignals
- Biomedical Signal Processing
- Statistical Analysis