Latent and observable variables
In
Latent variables may correspond to aspects of physical reality. These could in principle be measured, but may not be for practical reasons. Among the earliest expressions of this idea is Sir Francis Bacon's classic polemic the Novum Organum, itself a challenge to the more traditional logic expressed in Aristotle's Organon.
But the latent process of which we speak, is far from being obvious to men’s minds, beset as they now are. For we mean not the measures, symptoms, or degrees of any process which can be exhibited in the bodies themselves, but simply a continued process, which, for the most part, escapes the observation of the senses.
In this situation, the term hidden variables is commonly used (reflecting the fact that the variables are meaningful, but not observable). Other latent variables correspond to abstract concepts, like categories, behavioral or mental states, or data structures. The terms hypothetical variables or hypothetical constructs may be used in these situations.
The use of latent variables can serve to
Examples
Psychology
Latent variables, as created by factor analytic methods, generally represent "shared" variance, or the degree to which variables "move" together. Variables that have no correlation cannot result in a latent construct based on the common factor model.[4]
- The "Big Five personality traits" have been inferred using factor analysis.
- extraversion[5]
- spatial ability[5]
- wisdom “Two of the more predominant means of assessing wisdom include wisdom-related performance and latent variable measures.”[6]
Economics
Examples of latent variables from the field of economics include quality of life, business confidence, morale, happiness and conservatism: these are all variables which cannot be measured directly. But linking these latent variables to other, observable variables, the values of the latent variables can be inferred from measurements of the observable variables. Quality of life is a latent variable which cannot be measured directly so observable variables are used to infer quality of life. Observable variables to measure quality of life include wealth, employment, environment, physical and mental health, education, recreation and leisure time, and social belonging.
Medicine
Latent-variable methodology is used in many branches of
Inferring latent variables
There exists a range of different model classes and methodology that make use of latent variables and allow inference in the presence of latent variables. Models include:
- linear mixed-effects models and nonlinear mixed-effects models
- Hidden Markov models
- Factor analysis
- Item response theory
Analysis and inference methods include:
- Principal component analysis
- Instrumented principal component analysis[8]
- Partial least squares regression
- Latent semantic analysis and probabilistic latent semantic analysis
- EM algorithms
- Metropolis–Hastings algorithm
Bayesian algorithms and methods
Bayesian statistics is often used for inferring latent variables.
- Latent Dirichlet allocation
- The Chinese restaurant process is often used to provide a prior distribution over assignments of objects to latent categories.
- The Indian buffet process is often used to provide a prior distribution over assignments of latent binary features to objects.
See also
- Confounding
- Dependent and independent variables
- Errors-in-variables models
- Evidence lower bound
- Factor analysis
- Intervening variable
- Latent variable model
- Item response theory
- Partial least squares path modeling
- Partial least squares regression
- Proxy (statistics)
- Rasch model
- Structural equation modeling
References
- ISBN 0-19-920613-9
- ^ Bacon, Francis. "APHORISMS—BOOK II: ON THE INTERPRETATION OF NATURE, OR THE REIGN OF MAN". Novum Organum.
- .
- ISBN 978-0-321-05677-1.[page needed]
- ^ PMID 12747522. Archived from the original(PDF) on 2013-01-20. Retrieved 2008-04-08.
- PMID 19711618.
- JSTOR 1412107.
- ^ Kelly, Bryan T. and Pruitt, Seth and Su, Yinan, Instrumented Principal Component Analysis (December 17, 2020). Available at SSRN: https://ssrn.com/abstract=2983919 or http://dx.doi.org/10.2139/ssrn.2983919
Further reading
- ISBN 978-0-02-365070-3.