The model comparison framework of Levy and Hancock for covariance and mean structure models is extended to treat multiple-group models, both in cases in which group membership is known and in those in which it is unknown (i.e., finite mixtures). The framework addresses questions of distinguishability as well as difference in fit of the models with respect to data, first by determining the nature of the models' relation in terms of the families of distributions that constitute the models and then by conducting the appropriate statistical tests. In the case of latent mixtures of groups, the standard likelihood ratio theory does not apply, and a bootstrapping approach is used to facilitate the tests. Illustrations demonstrate the procedures.
Proceedings Paper (for Acquisition Research Program) ; The defense sector''s fundamentals in terms of operating margin and cash flow return on investment (CFROI) are stronger today than at any point in the past two decades due to better cash flow management, operating efficiencies, and record US defense spending. However, the economic and business environment for the defense sector moving forward is likely to be more difficult because of the Federal budget deficit and the government''s non-defense spending requirements. Likely changes in spending priorities have the potential to change the industry significantly. Assessing the vulnerability of the defense sector to potential market changes''both as a whole and within the various segments it comprises''is of the outmost importance. ; Naval Postgraduate School Acquisition Research Program ; Approved for public release; distribution is unlimited.