Hi there,
I am interested in empirically validating a theory through Structural Equation Modeling. This theory suggests that the relationship between X and Y is mediated by a sequence of M1, M2, and M3. In my study, X is a multi-categorical variable that has three levels (e.g., X1 = close, X2 = distant, and X3 = none). My study will also have one covariate, CV, that is expected to be negatively related to Y (i.e., when CV increases, Y decreases).
The alternative to having X as a multi-categorical variable would have been to utilise a continuous moderator, W. In the alternative model, W would have moderated the relationship between X and M1, as well as X and Y.
With this in mind, here are my questions:
Thank you for your time and input!
Warm regards,
George