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 A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.The term is commonly used in real estate, but has a wide application.Next Up. reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.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.
Some other examples of functional obsolescence in homes include: 1  All bedrooms on the 2nd floor and the only bath located on the 1st floor. 2  Walking through one bedroom to get to another. 3  Walking through a dining room or living room to get to a bedroom. 4  Walking through a formal space to enter the garage.