Contributor
Posts: 62

Path analysis

Dear Sir,

Expected relationships as follows:

Indirect effect: Idiorisk --> Gindex ---> Advertising

This is the program for path analysis:

proc calis data=testP1;

path  idiorisk ---> gindex,

run;

The report is shown after the q- it may not show good view but i have no choice as not allowed to attach word doc.

My q:

1.  See the final part of the report, where we can interpret the coefficient and t-statistics to see wht it is significant.

I can present the coefficient and t-stats for direct effect- that is from idiorisk to advertising-

 idiorisk ---> xad_log _Parm2 -0.13823 0.01957 -7.06337

Now i have to present the mediated path ie the product of the indirect path.

 idiorisk ---> GINDEX _Parm1 -0.05267 0.02013 -2.61637
 GINDEX ---> xad_log _Parm3 0.15389    0.01952    7.88173

coefficient for the indirect path would be -0.05267 x 0.15389= 0.008

Q: how do i calculate the standard error and t-statistics for the joint-product of this indirect effect?

(Purpose: is to see wht the direct effect or indirect effect is more weighted?)

2. I read from SAS note from help menu that Chi-square should be insiginificant so that the model is not rejected. The standardized root mean squares of residuals (SRMSR) and the root mean square error of approximation (RMSEA) must be very small.

How do we know whether this model is a good model?

Thanks

Mei

Result:

 The SAS System

The CALIS Procedure

Covariance Structure Analysis: Model and Initial Values

 Data Set WORK.TESTP1 N Records Read 8256 N Records Used 2455 N Obs 2455 Model Type PATH Analysis Covariances

 Endogenous Manifest GINDEX xad_log Latent Exogenous Manifest idiorisk Latent Number of Endogenous Variables = 2 Number of Exogenous Variables = 1

 idiorisk ---> GINDEX _Parm1 . idiorisk ---> xad_log _Parm2 . GINDEX ---> xad_log _Parm3 .

 The SAS System

The CALIS Procedure

Covariance Structure Analysis: Descriptive Statistics

 idiorisk 1.515550.81104 xad_log 3.143522.18902 GINDEX Governance Index (Gompers, Ishii, Metrick) 8.825662.46932

 The SAS System

The CALIS Procedure

Covariance Structure Analysis: Optimization

 1 Observed Moments of Variables 2 McDonald Method 3 Two-Stage Least Squares

 1 _Parm1 -0.16036 -4.565E-18 2 _Parm2 -0.37309 8.2743E-19 3 _Parm3 0.136424.626E-17 4 _Add1 0.65778 -9.78E-36 5 _Add2 4.57604 -1.379E-18 6 _Add3 6.08063 -1.204E-19 Value of Objective Function = 0

 The SAS System

The CALIS Procedure

Covariance Structure Analysis: Optimization

Levenberg-Marquardt Optimization

Scaling Update of More (1978)

 Parameter Estimates 6 Functions (Observations) 6

 Active Constraints 0 Objective Function 0 Max Abs Gradient Element 4.62604e-17 Radius 1

 Iterations 0 Function Calls 4 Jacobian Calls 1 Active Constraints 0 Objective Function 0 Max Abs Gradient Element 4.626042E-17 Lambda 0 Actual Over Pred Change 0 Radius 1

 Convergence criterion (ABSGCONV=0.00001) satisfied.

 The SAS System

The CALIS Procedure

Covariance Structure Analysis: Maximum Likelihood Estimation

 Modeling Info N Observations 2455 N Variables 3 N Moments 6 N Parameters 6 N Active Constraints 0 Baseline Model Function Value 0.0489 Baseline Model Chi-Square 119.8827 Baseline Model Chi-Square DF 3 Pr > Baseline Model Chi-Square <.0001 Absolute Index Fit Function 0.0000 Chi-Square 0.0000 Chi-Square DF 0 Pr > Chi-Square . Z-Test of Wilson & Hilferty . Hoelter Critical N . Root Mean Square Residual (RMSR) 0.0000 Standardized RMSR (SRMSR) 0.0000 Goodness of Fit Index (GFI) 1.0000 Parsimony Index Adjusted GFI (AGFI) . Parsimonious GFI 0.0000 RMSEA Estimate . Probability of Close Fit . ECVI Estimate 0.0049 ECVI Lower 90% Confidence Limit . ECVI Upper 90% Confidence Limit . Akaike Information Criterion 12.0000 Bozdogan CAIC 52.8353 Schwarz Bayesian Criterion 46.8353 McDonald Centrality 1.0000 Incremental Index Bentler Comparative Fit Index 1.0000 Bentler-Bonett NFI 1.0000 Bentler-Bonett Non-normed Index . Bollen Normed Index Rho1 . Bollen Non-normed Index Delta2 1.0000 James et al. Parsimonious NFI 0.0000

 The SAS System

The CALIS Procedure

Covariance Structure Analysis: Maximum Likelihood Estimation

 idiorisk ---> GINDEX _Parm1 -0.16036 0.06138 -2.61274 idiorisk ---> xad_log _Parm2 -0.37309 0.05332 -6.99743 GINDEX ---> xad_log _Parm3 0.136420.017517.78998

 The SAS System

The CALIS Procedure

Covariance Structure Analysis: Maximum Likelihood Estimation

 idiorisk ---> GINDEX _Parm1 -0.05267 0.02013 -2.61637 idiorisk ---> xad_log _Parm2 -0.13823 0.01957 -7.06337 GINDEX ---> xad_log _Parm3 0.153890.019527.88173