ABSTRACT
Structural equation modeling (SEM) is a multivariate technique that can best be described as a combination of both factor analysis and path analysis. It is a statistical technique that allows the analyst to examine a series of dependence relationships between exogenous and endogenous variables simultaneously. Before moving on to explaining the characteristics of SEM, it is necessary to remark on the distinction between exogenous and endogenous variables when used in causal models. According to Pedhazur (1997), an exogenous variable is one whose variability is assumed to be determined by causes outside the causal model under consideration. An endogenous variable, on the other hand, is one whose variation is to be explained by exogenous and other endogenous variables in the causal model.
