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 A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.The term is commonly used in real estate, but has a wide application.Next Up. reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.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.
Chapter 4 A classification of property investment depreciation and obsolescence 1. Depreciation and obsolescence The literature review described in Chapter 3 is dominated by non-academic and non-theoretical references to depreciation and obsolescence.henkel (1984) uses the terms physical depreciation, functional obsolescence and economic obsolescence, and confirms a (to date in this introduction) missing detail: Economic depreciation also is not curable. The examples (in the text) refer to environmental or neighbourhood factors that reduce a dwelling's value.