Hi guys,
The calculation of total effect of A on B is direct effect + indirect effect.
For example, one assessed the impact path of A to B.
Total effect (0.75) = direct effect (A to B, 0.05) + indirect effect (0.7) and the impact path A to B is assessed to be non significance with very low t- value.
I found out that although the impact path is not significant, we add up the value 0.05 to the total effect. This bothers me.
Can you explain me why we say that construct A is not positively related to construct B but should add up the small effect identified in path A to B?
Does it implies that even though it is not statistically significant but there is an effect existing?
This interpretation may not correct. Hope you guys can help me.
Best wishes.