Consider the model:

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

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

W x Y Z