AVE and Variance

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JELASSI
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AVE and Variance

Post by JELASSI »

Hi everybody,

Maybe the question I am asking is stupid and I apologize in advance. I hope someone can help me.

If we have a latent endogenous variable Y explained by three latent exogenous variables X1, X2 and X3. In the table "Overview", the AVE of Y is the Percentage of variance explained by the three variables X1+X2+X3.
How to know the percentage of variance of Y explained by X1?

I have a proposal how to answer this question. I hope you will correct it if it's wrong.
If I take the values in the table "Latent variables correlations" and I square them, I will obtain the percentage of variance of the endogenous variable explained by each exogenous variable. Is it correct?

Thanks a lot for your help.

Best.

Kaouther
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Diogenes
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Post by Diogenes »

Hi Kaouther,


AVE is the average % of the variance of all the indicators of the same LV that is explained by this LV.

R2 is the % of the variance of the endogenous LV (Y) that is explained by all exogenous LV (x1, x2, x3).

R2 = path11 * r11 + path 21 * r21 + path31 * r31

Then the % of variance of the LV (Y) that is explained by x1 will be = path11 * r11


Best regards,

Bido
JELASSI
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Post by JELASSI »

Thanks a lot.

Best

Kaouther
JELASSI
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Post by JELASSI »

Dear Professor,

I followed your advice and I computed the % of variance of the LV (Y) that is explained by x1 and x2 (path 11 * r11 and path 21 * r21). X1 explained 31% of variance of Y and X2 explained 22% of variance of Y.
But the path31 of my 3rd variable is negative.
Can I apply the same formula to compute the % of variance of the LV (Y) that is explained by x3?
How could I interpret the result?

Thank you very much

Best regards.

Kaouther
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Diogenes
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Post by Diogenes »

Hi Kaouther,

Yes, use the same way.

If the path31 is negative, probably the r31 is negative too, then ( – * – = + ), this parcel of explained variance will be added to the other two (x1 and x2).

Interpretations with a numeric example:
a) Path31 = – .23 (when x3 increases by 1 standard deviation, y will decreases .23 standard deviation.

b) Path31 * r31 = +.09 (x3 explain 9% of the variance of y)

c) Path31 * r31 = – .09 (you should not interpret, because there is a suppression problem).

If the path31 is negative and r31 is positive, you have a suppression problem (multicollinearity between x1, x2, x3), even in this case, compute the R2 in the same way.


Best regards,

Bido
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