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 A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.The term is commonly used in real estate, but has a wide application.Next Up. reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.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.
Easier to explain and observe, external obsolescence refers to an undesirable factor outside the property and is generally not curable. This can include: Highways: Unless youâre a NASCAR fan, having traffic buzz past your front yard at 55 mph isnât the most desirable situation.