Mediation analysis in R

Now, let’s see how we can use R to apply mediation analysis. Let’s look at it through a problem-solving frame of mind with notable R packages.

In this case study, we aim to dissect the factors leading to an increase in policy termination within an insurance company, focusing on how these factors interact with gender and age groups.

First, we’ll construct a synthetic dataset to mimic real-world complexities, then apply mediation analysis in R to uncover potential mediators of the observed trends.

Setting up the R environment

Before we begin our analysis, ensure our R environment is equipped with the necessary packages. For mediation analysis, we will utilize the mediation and lavaan packages. You can install them using the following commands:

install.packages("mediation")
install.packages("lavaan")
library(mediation)
library(lavaan)

Preparing data for mediation analysis

To simulate a dataset that reflects...