Factor-based SEM methods, as executed by software programs such as AMOS, Mplus, and LISREL, empirically represent the conceptual variable using common factors consisting of only common variance that explains the covariation between their associated indicators ( Jöreskog, 1973). There are two types of SEM methods, which differ in their assumptions about the way they map the elements of conceptual models in statistical analysis (Jöreskog & Wold, 1982).

Structural equation modeling (SEM) is a family of statistical methods that estimate relationships among sets of observed variables, which represent the conceptual variables in statistical models.

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