A latent variable model is a statistical model that relates a set of variables (so-called manifest variables) to a set of latent variables.
DEFINITION of 'Functional Obsolescence'. A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.The term is commonly used in real estate, but has a wide application.Next Up. reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed. The term is commonly used in real estate, but has a wide application. Next Up.
obsolescence found in the property. It should be noted that this paper is not intended to go through the process of calculating the item of obsolescence, there are many excellent appraisal texts the appraiser can obtain that properly show the calculations necessary to properly deduct for any form of functional obsolescence.