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Hi, I'm new to SEM and I'm trying to build a model of marketing mix using sem.
My question is that is it possible to incorporate an observed variable in the structural component of SEM which has an effect on a latent variable or is being affected by a latent variable?
I have attached a pictoral representation of my question.
Please help.
Thank you in advance,
Sahil.
In the diagram you attached, the measured variable of interest is being regressed onto LV1 and LV2. That means it's a "marker" variable for both latent variables. In other words, LV2 is a factor representing common variance among MV4, MV5, MV6, and the MV of interest. Is that really what you want to do?