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Path analysis method is a generalized regression which can show direct, indirect and the whole impacts of independend variables on dependent variables and explain their relationship and correlation logically.
In the past decade to study the causal connection between variables much integrated efforts had been done and one of the new methods in this field is ‘Structural Equation Model” (SEM). SEM with using experimental and non experimental correlated data can test thoritical models in special communities.
In this article in accordance with the definition of SEM ten conditions of making the model of causal and inference connection will be discussed and four applied cases in industrial engineering and management science are path analyzed with LISREL (Linear Structural Equation Model Latent Variables) software.