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 A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.The term is commonly used in real estate, but has a wide application.Next Up. reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.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.
External obsolescence is a factor that reduces the value of an improvement because of something external to the property itself. Itâs not about whether the house is outdated or not, but rather something outside of the home that is causing a lower value. Itâs usually something that cannot be cured.