It is not, however, by itself a method of discovering causal laws but rather a procedure for giving a quantitative interpretation to an assumed causal system. In the example, everything is relative to the relationships assumed and the corresponding diagram. E.g., in the example above, another modeler might have put in an arrow directly from Pay Level to Job Satisfaction. The four paths which are thus defined are as follows. Y Each of these may or may not be in the diagram used by the researcher to model a given situation.
Y write down the path equations and their solution in terms of the three correlation coefficients.
Bringing Sears into the New World. Smart Managing Section. Stratford Sherman interviews Anthony Rucci. On line Harvard Business School. Rev. 3-February 3, 1998.