1. The General LISREL Model Ulf H. Olsson Professor of statistics

2. 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.

3. Ulf H. Olsson Ordinal Variables In practice, observed or measured variables are often ordinal However, ordinality is often ignored and numbers such as 1,2,3, etc. representing ordered categories, are treated as continuous variables. But, this is incorrect!

4. Ulf H. Olsson Making Numbers Loyalty Branch Loan Savings Satisfaction

5. Ulf H. Olsson Making Numbers-Econometric Model

6. Ulf H. Olsson Making Numbers-Psychometric Model

7. Ulf H. Olsson Making Numbers-Psychometric Model

8. Ulf H. Olsson Parameter Function

9. Ulf H. Olsson The Maximum Likelihood Estimator

10. Ulf H. Olsson ML and RLS(NWLS) k is the number of manifest variables. D is the duplication matrix (Magnus and Neudecker 1988) and is the ML estimate.

11. Ulf H. Olsson Drink and Drive case See word file: Drinkdrivecaseuke38.doc

12. Ulf H. Olsson

13. 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