A latent variable model is a statistical model that relates a set of variables (so-called manifest variables) to a set of latent variables. It is assumed that the responses on the indicators or manifest variables are the result of an individual’s position on the latent variable(s), and that the manifest variables have nothing in common after controlling for the latent variable (local independence). Different types of the latent variable model can be grouped according to whether the manifest and latent variables are categorical or continuous. … Latent Variable Model