Description: A probabilistic latent class model is a statistical model that assumes the population is composed of a finite number of latent classes. These classes are not directly observable but are inferred from the observed data. This approach allows capturing heterogeneity in the data, as each latent class can represent a distinct group with specific characteristics. Latent class models are particularly useful in situations where the data is complex and exhibits variability that cannot be explained by a single model. By using these models, underlying patterns in the data can be identified, facilitating segmentation and group analysis. Additionally, these models are flexible and can adapt to different types of data, including categorical and continuous data. Their ability to model complex relationships and their probabilistic approach make them valuable tools in various disciplines, such as social sciences, biology, and marketing, where understanding differences between groups is crucial for informed decision-making.
