Problem 1 Consider the model:

1. Identify all of the active paths between pairs of variables.
2. Use Wrightís decomposition rule (in either form) to generate a system of equations for the correlations in terms of the path coefÝcients.
3. Solve the system of equations ó i.e., convert it into a set of equations for the path coefÝcients in terms of the correlations.
4. Given the following correlation table, compute the path coefÝcients.

5. How much of the variation of is unexplained? How much for ?

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