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Structural Equation Modeling is a multivariate technique. It is based on formulating a set of linear relations between variables, some of which may be latent, and estimating the whole system, typically by analyzing the covariance matrix of the observed variables.

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Structural Equation Modelling - Semopy

Your problem may be confusing notation. You've transformed your original $X_1,X_2,X_3$ and want to refer to both the transformed and untransformed variables. Let $f_1$ be a function over $X_1,X_2,X_3$ …
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