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* Basic Steps in Performing SEM analysis
1. '''Model Specification'''--Since SEM is a confirmatory technique, it is imperative that the model is specified correctly based on the type of analysis that the modeller is attempting to confirm. There are two main types of models: the ''structural model'' and the ''measurement model''. Specifying the model delineates
2. '''Estimation of Free Parameters'''--appropriating the best fitting model in SEM is an iterative process. Therefore, a estimation is made comparing the actual variance/covariance matrices representing the relationships between variables and the estimated variance/covariance matrices of the best fitting model. This is best accomplished by using an SEM analysis program, such as LISREL or AMOS.
3. '''Assessment of Fit'''--Using an SEM analysis program, the iterations compare the estimated matrices representing the relationships between variables in the model to the actual matrices. Individual factors within the model are also examined within the estimated model in order to see how well the proposed model fits the driving theory.
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