Structural Equation Modeling (SEM)❓
1️⃣. Structural Equation Modeling (SEM)
What is SEM?
Structural Equation Modeling (SEM) is an advanced statistical technique used to test relationships between multiple variables simultaneously. It combines elements of:
✔️Factor analysis (to measure unobservable concepts like perception or attitude),
✔️Regression analysis (to test cause-and-effect relationships),
✔️Path analysis (to visualize relationships between variables).
Key Components of SEM
1. Latent Variables (Unobserved Variables)
✔️These are theoretical concepts that cannot be directly measured (e.g., "Customer Perception").
✔️They are inferred from multiple observed variables (indicators).
2. Observed Variables (Indicators)
✔️These are directly measured variables (e.g., survey questions on customer perception).
3. Measurement Model
✔️This part of SEM examines how well observed variables represent latent variables (like in Factor Analysis).
4. Structural Model
✔️This examines the relationships between latent variables (like in Regression Analysis).
SEM helps test:
✔️Whether financial knowledge significantly influences Takaful adoption.
✔️Whether customer perception mediates this relationship.
Why Use SEM?
✅ Tests multiple relationships at once.
✅ Identifies direct and indirect effects (mediation analysis).
✅ Accounts for measurement errors.
1️⃣. Structural Equation Modeling (SEM)
What is SEM?
Structural Equation Modeling (SEM) is an advanced statistical technique used to test relationships between multiple variables simultaneously. It combines elements of:
✔️Factor analysis (to measure unobservable concepts like perception or attitude),
✔️Regression analysis (to test cause-and-effect relationships),
✔️Path analysis (to visualize relationships between variables).
Key Components of SEM
1. Latent Variables (Unobserved Variables)
✔️These are theoretical concepts that cannot be directly measured (e.g., "Customer Perception").
✔️They are inferred from multiple observed variables (indicators).
2. Observed Variables (Indicators)
✔️These are directly measured variables (e.g., survey questions on customer perception).
3. Measurement Model
✔️This part of SEM examines how well observed variables represent latent variables (like in Factor Analysis).
4. Structural Model
✔️This examines the relationships between latent variables (like in Regression Analysis).
SEM helps test:
✔️Whether financial knowledge significantly influences Takaful adoption.
✔️Whether customer perception mediates this relationship.
Why Use SEM?
✅ Tests multiple relationships at once.
✅ Identifies direct and indirect effects (mediation analysis).
✅ Accounts for measurement errors.