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Biometrika 1984 71(3):569-573; doi:10.1093/biomet/71.3.569
© 1984 by Biometrika Trust
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Estimation of parameters in linear structural relationships: Sensitivity to the choice of the ratio of error variances

MANI Y. LAKSHMINARAYANAN and RICHARD F. GUNST

Department of Statistics, Southern Methodist University Dallas, Texas, U.S.A.

Maximum likelihood estimation of parameters in linear structural relationships under normality assumptions requires knowledge of one or more of the model parameters if no replication is available. The most common assumption added to the model definition is that the ratio of the error variances of the response and predictor variates is known. This paper investigates the use of asymptotic formulae for variances and mean squared errors as a function of sample size and the assumed value for the error variance ratio.

Key Words: Errors in variables • Identifiability • Regression


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