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impossible to measure this construct directly, so we do the next best thing and measure indicators of Acceptance of Risky Behavior We hope that we are able to tap into adolescents Acceptance of Risky Behavior by measuring several observable indicators In this example we use just two indicators In Figure 242, bonds to family, bonds to teachers, degree of endorsement of smoking and drinking, and the latent variable, Acceptance of Risky Behaviors, all have one-way arrows pointing to them These variables are dependent variables in the model Gender and Weak Institutional Bonds are IVs in the model; as such they have no one-way arrows pointing to them Notice that all the DVs, both observed and unobserved, have arrows labeled E or D pointing toward them Es (errors) point to measured variables; Ds (disturbances) point to latent variables (factors).



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The E5 signal (see Fig. 6.12) includes the following components and is obtained through an AltBOC modulation:

pX64 Compression Overview Sampling frequency. Pictures are sampled at an integer multiple of the video line rate. A sampling clock and network clock are asynchronous. Source coding algorithm. Compression is based on interpicture prediction to utilize temporal redundancy, and transform coding of the remaining signal to reduce spatial redundancy. The decoder has motion compensation capability, allowing optional incor-





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As in multiple regression, nothing is predicted perfectly; there is always a residual or error In SEM the residual not predicted by the IV(s) is included in the diagram with these paths The part of the model that relates the measured variables to the factors is sometimes called the measurement model In this example, the two constructs (factors), Weak Institutional Bonds and Acceptance of Risky Behavior, and the indicators of these constructs (factors) form the measurement model The hypothesized relationships among the constructs in this example, the one path between Weak Institutional Bonds and Acceptance of Risky Behavior is called the structural model Predictive relationships are examined in SEM For example, in this model we are interested in whether each latent variable (Acceptance of Risky Behavior and Weak Institutional Bonds) predicts the measured variables associated with it.

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Another method of ratio comparison may use comparable ratios from similar competitive organizations Obtaining competitive ratios may prove difficult, if not impossible If competitive ratios are available and they differ when compared to the ratios of your operation, which ratios are better There are many reasons that may explain the differences in individual ratios between competitors A better technique is to compare current operating period ratios with previous operating period ratios For example, how does current room occupancy or seat turnover ratio compare with the same ratio from the previous month, or the previous year What is the trend Is room occupancy or seat turnover increasing, or is room occupancy or seat turnover decreasing How do you determine if the difference in the ratio is appropriate or inappropriate Even with limited exposure, one soon discovers that a hospitality business operates in a dynamic and rapidly changing environment.

Therefore, comparison of current period ratios to past period ratios may be like comparing copper to gold The best method of ratio comparison is to evaluate current period ratios to predetermined standards for that operating period The predetermined standard should consider both internal and external factors affecting the operation Internal factors might include the composition of sales revenue (cash versus credit sales), fixed and variable costs, internal operating policies, changes in operating procedures, and many other similar operating variables External factors might include general economic conditions and what the competition is doing Periodic predetermined operating standards can be used to develop operating plans to assist in developing the annual operating budget (forecasted income statement) The operating budget can be broken down into monthly or quarterly operating periods, which are adjusted for seasonal variations.

Additionally, it is hypothesized that the latent variable, Acceptance of Risky Behavior, is predicted by Weak Institutional Bonds Note that both models presented so far include hypotheses about relationships among variables (covariances) but not about means or mean differences Mean differences associated with group membership can also be tested within the SEM framework but are not demonstrated in this chapter Advantages of Structural Equation Modeling There are a number of advantages to the use of SEM When relationships among factors are examined, the relationships are free of measurement error because the error has been estimated and removed, leaving only common variance Reliability of measurement can be accounted for explicitly within the analysis by estimating and removing the measurement error Additionally, as was seen in Figure 242, complex.

2 ln f (X; ) .

Operating budgets should project future operations based not only on past operating results but also on current operating results Budgeting is an important and time-sensitive management skill and is discussed in depth in 9..

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