Which of the following is a characteristic of latent variables?
A) The value of the latent variable is high, than the dependent variable for that observation is likely to be 0.
B) The value of the latent variable is high, than the dependent variable for that observation is likely to be 1.
C) It is an observed continuous variable reflecting the propensity of an individual observation of Yi to be equal to 0 or 1.
D) They are normally distributed.

Question

Quizplus · Accepted Answer

Latent variables are unobserved or indirectly measured variables that are inferred from observed variables. In the case of binary latent variables, such as in logistic regression, when the value of the latent variable is high, the dependent variable for that observation is likely to be 1. This means that the higher the probability of the event occurring (as indicated by the latent variable), the more likely it is to observe the event. Choice A is incorrect because a high value of the latent variable does not necessarily mean the dependent variable is 0. Choice C is incorrect because latent variables are unobserved and not continuous variables. Choice D is incorrect because the distribution of the latent variable depends on the specific model and is not necessarily normal.

Which of the Following Is a Characteristic of Latent Variables