Path diagram. Photo: https://stackoverflow.com/questions/57352909/sem-model-syntax-given-path-diagram
Latent factors are variables that cannot be observed directly but can be inferred from a set of observable variables. For example, in psychology, bad conduct (latent factor) can be measured by how much one engages in fighting, bullying, stealing, swearing, cheating, lying and losing temper (observable variables). In marketing, customer satisfaction can be measured by...
