Latent Variable Modeling
Techniques used to model variables that are not directly observed but are inferred from other variables, common in complex survey data analysis.
Implications
A statistical approach used to infer unobserved (latent) variables from observed data, often applied in fields like psychology, sociology, and market research to model complex constructs such as intelligence, customer satisfaction, or brand loyalty, which cannot be directly measured.
Example
Example: A market research firm uses Latent Variable Modeling to analyze customer survey data, inferring latent variables like brand loyalty and perceived value that influence customer satisfaction and purchasing decisions.
Related Terms
Different from direct measurement, which involves observing and recording data that can be directly measured, latent variable modeling deals with constructs that are not directly observable and must be inferred from related data.
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