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 A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.The term is commonly used in real estate, but has a wide application.Next Up. reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.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.
In other words there are features that are not practical or desirable. There are numerous examples of functional obsolescence but one that hits close to home was a property I recently sold that had more than a few flaws. This particular property was very large in size â 4000 plus square feet. The home, however did not have a formal dining or living room.