This study investigated the sensitivity of fit indices to model misspecification in within-individual covariance structure, between-individual covariance structure, and marginal mean structure in growth curve models. Five commonly used fit indices were examined, including the likelihood ratio test statistic, root mean square error of approximation, standardized root mean square residual, compar...

This is a synopsis of the work underlying the author’s contributed plenary presentation at the Valencia 8 meeting on Bayesian Statistics, held in Benidorm, June 2006. We show that Bayesian inference can be inconsistent under misspecification. Specifically, we exhibit a distribution P ∗, a model M with P ∗ 6∈ M, and a prior Π on M such that the prior puts significant mass on P̃ , the best approxi...

For decades financial economists have been attempted to determine the optimal investment policy by recognizing the option value embedded in irreversible investment whose project value evolves as a geometric Brownian motion (GBM). This paper aims to examine the effects of the optimal investment trigger and of the misspecification of stochastic processes on investment in real options applications...

Piecewise growth curvemodel (PGCM) is often usedwhen the underlying growth process is not linear and is hypothesized to consist of phasic developments connected by turning points (or knots or change points). When fitting a PGCM, the conventional practice is to specify turning points a priori. However, the true turning points are often unknown and misspecifications of turning points may occur. T...