Just so this post doesn’t get too stupid, let’s use an example from my dissertation, which measured the latent variables of perceived ease of use (PEOU) and perceive use (PU), both independent variables, that were derived from observable (indicator) variables that came from a survey.
“how much do you like chocolate”, or “on a scale of 1 to 5, 5 being the mostest, how much do you like chocolate over creamed corn?”), the results of those variables can be combined to form a latent variable. More simply, if you measure a bunch of variables (e.g. Latent variables are variables that are ‘inferred’ and not directly measured. PLS-SEM provides the researcher an ability to analyze cause and effect relationships with latent variables.
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