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Latent class model

The latent class model (LCM), often referred to in its analytical application as latent class analysis (LCA), is a statistical technique within the framework of finite mixture modeling that identifies unobserved subgroups, or latent classes, in a population based on patterns observed in categorical indicator variables.^[1] It posits that the heterogeneity in the data arises from individuals belonging to one of several distinct latent classes, each characterized by a unique probability distribution over the indicators, with class membership probabilities derived probabilistically from the observed data rather than through deterministic assignment.^[2] This model enables the classification of individuals into mutually exclusive and exhaustive groups while accounting for measurement error and conditional dependencies among variables.^[3] Originally conceptualized by sociologist Paul Lazarsfeld in the early 1950s as a method for analyzing latent structures in survey data, the LCM was formally developed and detailed in the 1968 book Latent Structure Analysis co-authored with Neil W. Henry, which provided the foundational mathematical framework for estimating class probabilities and conditional item responses.^[3] The model was further generalized and computationally advanced by statistician Leo A. Goodman in 1974, extending it to handle nominal polychotomous variables and incorporating log-linear parameterizations for broader applicability.^[3] A core assumption of the LCM is local independence, meaning that within each latent class, the indicator variables are conditionally independent given class membership, which simplifies the likelihood function and facilitates estimation via maximum likelihood methods, often using the expectation-maximization (EM) algorithm.^[1] Another key assumption is that class membership follows a multinomial distribution, with the number of classes determined through model selection criteria such as the Bayesian Information Criterion (BIC) or Akaike Information Criterion (AIC).^[4] The LCM has evolved into a versatile tool across disciplines, particularly in the social sciences, psychology, and medicine, where it is used to uncover hidden population heterogeneity, such as distinct subtypes of disorders or behavioral patterns.^[4] For instance, in clinical research, it has identified phenotypes in conditions like acute respiratory distress syndrome (ARDS) and sepsis, revealing subgroups with differing treatment responses and outcomes across multiple randomized controlled trials.^[1] Extensions of the basic model include latent profile analysis for continuous indicators, latent transition analysis for modeling changes over time, and integration with regression for relating class membership to covariates or distal outcomes.^[4] Despite its strengths in providing probabilistic assignments and statistical rigor over traditional clustering methods, the LCM requires careful validation, including external replication and sensitivity to starting values in estimation, to ensure robust class solutions.^[1]

Overview

Definition

The latent class model (LCM) is a probabilistic statistical method used to identify unobserved subgroups, or latent classes, within a population based on patterns in multivariate categorical data. It assumes that the observed data are generated from a finite mixture of multinomial distributions, where each latent class corresponds to a distinct subpopulation with its own probability distribution over the categorical variables. This approach allows researchers to model heterogeneity in the data by partitioning individuals into classes that explain the observed response patterns more effectively than assuming a single homogeneous population.^[5] Central to the LCM is the use of discrete latent variables to represent class memberships, which capture population heterogeneity by assuming conditional independence among the observed categorical variables given the latent class. In this framework, the joint distribution of the observed variables is expressed as a weighted sum of the class-specific conditional distributions, with weights reflecting the prevalence of each class. This structure enables the model to uncover hidden structures in data where direct observation of subgroups is not possible, such as in survey responses or behavioral indicators.^[6] Unlike traditional clustering methods like k-means, which assign hard memberships based on distance metrics and do not inherently account for uncertainty, the LCM provides probabilistic class assignments, allowing individuals to have partial memberships across classes and facilitating the quantification of classification uncertainty. This probabilistic nature makes it particularly suitable for categorical data analysis in fields like social sciences and psychology, where measurement error and overlapping subgroups are common.^[7] For illustration, consider a simple two-class LCM applied to binary survey responses from two items, such as agreement with statements on environmental attitudes (e.g., "Recycle more" and "Support green policies," coded as yes/no). In one class, respondents might have high probabilities (e.g., 0.9 and 0.8) of endorsing both, representing "pro-environmental" individuals, while the other class shows low probabilities (e.g., 0.2 and 0.1), indicating "non-pro-environmental" respondents; class prevalences might be 60% and 40%, respectively, explaining the overall data patterns.

Historical development

The latent class model originated in the early 1950s through the work of sociologist Paul Lazarsfeld, who introduced latent structure analysis as a method to identify unobserved homogeneous classes underlying observed qualitative data patterns.^[8] Lazarsfeld's foundational contributions, detailed in his 1950 publications, framed the model as a probabilistic approach for clustering multivariate discrete variables, drawing from earlier ideas in typology construction but formalizing them mathematically for empirical social research.^[2] This innovation addressed limitations in traditional scaling techniques by positing latent classes as explanatory mechanisms for associations among manifest indicators.^[9] In the 1970s, statistician Leo Goodman advanced the model's rigor by developing maximum likelihood estimation procedures and exploring identifiability conditions, making practical implementation feasible beyond theoretical sketches. Goodman's 1974 paper on exploratory latent structure analysis extended Lazarsfeld's framework to handle both identifiable and unidentifiable models, resolving computational challenges through iterative algorithms that laid groundwork for broader statistical applications.^[10] These extensions solidified the latent class model as a cornerstone of categorical data analysis, influencing fields like sociology and psychometrics. During the 1980s and 1990s, the model integrated more deeply with finite mixture modeling traditions, with key contributions from Allan McCutcheon, whose 1987 monograph provided a comprehensive synthesis of estimation techniques and applications for analyzing interrelated categorical measures. This period marked a shift toward versatile extensions, such as handling multiple groups and longitudinal data, enhancing the model's utility in empirical studies. The rise in popularity accelerated in the 2000s, driven by computational advances like efficient expectation-maximization implementations and accessible software, including Mplus (initially released in 1998 and widely adopted for latent class procedures by the mid-2000s) and the poLCA package for R (introduced in 2011).^[11]^[12] As of 2025, the latent class model continues to evolve with refinements for handling big data, such as scalable algorithms using artificial likelihoods to manage large-scale trajectory analyses without excessive computational demands.^[13] Recent integrations with machine learning, including hybrid approaches for incorporating attitudinal indicators in choice models, further expand its role in AI-driven clustering and personalization tasks.^[14] In 2024, the multilevLCA R package was developed to support multilevel latent class analysis, addressing complex hierarchical data structures.^[15]

Mathematical Foundation

Model specification

The latent class model assumes the existence of an unobserved categorical latent variable C that takes one of K possible values, representing distinct subpopulations or classes within a heterogeneous population. The observed data consist of J categorical indicator variables Y = (Y_1, \dots, Y_J), where each Y_j is a discrete random variable taking values in a finite set \{1, \dots, R_j\} with R_j \geq 2 categories. The joint probability distribution of the observed variables is modeled as a finite mixture distribution, where the mixture components correspond to the conditional distributions of Y given each latent class C = k for k = 1, \dots, K.^[16] A key assumption of the model is local independence, which posits that the observed indicators are conditionally independent given the latent class membership. Thus, the class-conditional probability is given by

P(Y \mid C = k) = \prod_{j=1}^J P(Y_j \mid C = k).

This assumption simplifies the modeling of multivariate categorical data by factoring the joint conditional distribution into univariate components.^[16]^[17] The model is parameterized by two sets of probabilities. First, the latent class probabilities \pi_k = P(C = k) for k = 1, \dots, K, which satisfy \sum_{k=1}^K \pi_k = 1 and \pi_k > 0, representing the prevalence of each class in the population. Second, the item-response probabilities \theta_{jkm} = P(Y_j = m \mid C = k) for j = 1, \dots, J, k = 1, \dots, K, and m = 1, \dots, R_j, which capture the response patterns for each indicator within each class and satisfy \sum_{m=1}^{R_j} \theta_{jkm} = 1 for each j and k. These parameters fully specify the conditional distributions, with the \theta_{jkm} often interpreted as the probability of endorsing category m on item j for individuals in class k.^[16]^[17] The unconditional joint probability for an observed response pattern y = (y_1, \dots, y_J) is then

P(Y = y) = \sum_{k=1}^K \pi_k \prod_{j=1}^J \theta_{jk y_j},

where y_j denotes the realized value of Y_j. This equation expresses the observed data likelihood as a weighted average over the latent classes, with weights given by the class probabilities and each component reflecting the product of item-specific probabilities under local independence.^[16] In notational conventions, the conditional distributions P(Y_j \mid C = k) are typically modeled using the multinomial distribution, which is appropriate for unordered categorical data where categories lack a natural ordering. For instance, each Y_j can be viewed as following a multinomial distribution with R_j categories and class-specific probabilities \{\theta_{jk1}, \dots, \theta_{jk R_j}\}. When the categories are ordered (e.g., ordinal scales such as Likert items), the basic model still applies by treating them as nominal, though extensions like cumulative logit parameterizations may be used to incorporate the ordering while maintaining the core structure.^[16]^[17] For the model to be identifiable—meaning that the parameters can be uniquely recovered from the observed data distribution—the number of latent classes K must generally be constrained relative to the data structure to prevent overparameterization. A standard requirement is that K should not exceed the minimum number of categories across all items minus one, though practical identifiability also depends on the number of indicators J and ensuring the number of free parameters does not exceed the degrees of freedom in the observed contingency table. For example, with all binary indicators (R_j = 2 for all j), the model is typically identifiable only for K \leq 2 without imposing additional constraints such as fixing certain parameters, provided J \geq 3.^[16]

Likelihood function and identifiability

The likelihood function for the latent class model is derived under the assumption of n independent and identically distributed observations, where each observation i consists of a vector of J categorical indicators \mathbf{Y}_i = (Y_{i1}, \dots, Y_{iJ}). The probability of observing \mathbf{Y}_i is a mixture over the K latent classes, given by P(\mathbf{Y}_i) = \sum_{k=1}^K \pi_k \prod_{j=1}^J P(Y_{ij} | C_i = k), with \pi_k denoting the mixing proportion for class k and P(Y_{ij} = y | C_i = k) = \theta_{jk y} the class-conditional probabilities. The corresponding log-likelihood function is then

\ell(\pi, \theta) = \sum_{i=1}^n \log \left[ \sum_{k=1}^K \pi_k \prod_{j=1}^J \theta_{jk Y_{ij}} \right],

where \theta = \{ \theta_{jk y} \} parameterizes the class-conditional distributions, subject to \pi_k > 0, \sum_{k=1}^K \pi_k = 1, and \sum_y \theta_{jk y} = 1 for all j, k. This function is generally non-concave and may exhibit multiple local maxima, complicating direct maximization.^[18] To aid parameter estimation, the complete-data likelihood augments the observed data with the latent class assignments C_i, yielding P(\mathbf{Y}_i, C_i = k) = \pi_k \prod_{j=1}^J \theta_{jk Y_{ij}}. Since the C_i are unobserved, estimation relies on the expected complete-data log-likelihood, which introduces the posterior class probabilities \gamma_{ik} = P(C_i = k | \mathbf{Y}_i; \pi, \theta) = \frac{\pi_k \prod_{j=1}^J \theta_{jk Y_{ij}}}{\sum_{m=1}^K \pi_m \prod_{j=1}^J \theta_{jm Y_{ij}}}. These \gamma_{ik} serve as soft assignments of individuals to classes and are central to iterative estimation procedures.^[1] Identifiability of the model parameters ensures unique recovery from the observed data distribution. Local identifiability holds when the parameters have a neighborhood in which no other distinct set produces the same probabilities, typically enforced by constraints such as \pi_k > 0 and \sum_k \pi_k = 1, which render the Fisher information matrix positive definite. Global identifiability, requiring a unique maximum likelihood estimate across the entire parameter space, demands sufficient indicators to distinguish class-conditional distributions; for binary indicators, at least three are needed for two classes to avoid underidentification. Equivalents apply to polytomous indicators, where the effective degrees of freedom must exceed the parameter count.^[19]^[20] Despite these conditions, practical challenges arise in fitting the model. The label switching problem occurs because the likelihood remains unchanged under permutations of class labels, resulting in equivalent solutions with swapped class identities across multiple runs. This is addressed by post hoc relabeling or a priori ordering constraints, such as requiring class-specific probabilities to be monotonically increasing across classes. Estimation is also sensitive to initial values, as the optimization landscape features local maxima; running the algorithm with multiple random starts (e.g., at least 20–50) and selecting the solution with the highest likelihood mitigates this issue.^[21]^[3] For model selection, particularly choosing the number of classes K, the Bayesian Information Criterion (BIC) evaluates trade-offs between likelihood fit and model complexity via \text{BIC} = -2\ell + p \log n, where p is the number of parameters. Lower BIC values indicate better models, and simulations show BIC reliably recovers the true K across sample sizes and class structures, outperforming alternatives like AIC in most cases.^[22]

Parameter Estimation

Expectation-Maximization algorithm

The Expectation-Maximization (EM) algorithm serves as the primary frequentist method for estimating the parameters of the latent class model by maximizing the observed-data likelihood function, treating unobserved class memberships as missing data. Developed by Dempster, Laird, and Rubin (1977), the algorithm proceeds iteratively, alternating between an E-step that computes expected values for the latent class assignments and an M-step that updates the model parameters to increase the likelihood. This approach is particularly suited to the latent class model because the complete-data likelihood (including class labels) has closed-form maximum likelihood estimates, while the observed-data likelihood does not due to the summation over latent classes. In the E-step at iteration t, the expected class membership probabilities \gamma_{ik}^{(t)} for observation i and class k are calculated as

\gamma_{ik}^{(t)} = \frac{\pi_k^{(t)} P(Y_i \mid k; \theta^{(t)})}{P(Y_i; \phi^{(t)})},

where \pi_k^{(t)} is the current estimate of the class prevalence, P(Y_i \mid k; \theta^{(t)}) is the probability of the observed responses Y_i given class k under the current conditional parameters \theta^{(t)}, and P(Y_i; \phi^{(t)}) = \sum_k \pi_k^{(t)} P(Y_i \mid k; \theta^{(t)}) is the marginal probability of the responses. These posteriors represent soft assignments of observations to classes based on current parameters. In the subsequent M-step, the parameters are updated in closed form: the class prevalences become \pi_k^{(t+1)} = n^{-1} \sum_i \gamma_{ik}^{(t)}, and the conditional probabilities for item j, category m, and class k are \theta_{jkm}^{(t+1)} = \sum_i \gamma_{ik}^{(t)} I(Y_{ij} = m) / \sum_i \gamma_{ik}^{(t)}, where I(\cdot) is the indicator function. Each full iteration guarantees a non-decrease in the observed log-likelihood, which serves as the objective function. Initialization is critical to avoid convergence to local maxima, as the likelihood surface for latent class models can be multimodal. Common strategies include random starting values for \pi_k (e.g., uniform across classes) and \theta_{jkm} (e.g., uniform across categories), often drawn from a Dirichlet distribution to ensure positivity. Seeding via k-means clustering on the observed responses can provide more informed initial conditional probabilities and prevalences. To mitigate poor local optima, multiple independent runs (typically 10 to 100) are performed from different initializations, and the solution with the highest final log-likelihood is retained. This practice is essential for ensuring replicability and robustness in latent class estimation.00402-0) Convergence is assessed by monitoring the increase in the log-likelihood between iterations, stopping when the relative change falls below a tolerance threshold such as $10^{-6} or after a predefined maximum number of iterations (e.g., 1000) to avoid excessive computation. Singularities, where a class prevalence approaches zero or conditional probabilities hit the boundary (0 or 1), can cause numerical instability and zero likelihood values; these are handled by monitoring parameter bounds during updates, adding small ridge penalties (e.g., $10^{-6}) to probabilities, or restarting from perturbed initials if detected. The algorithm's monotonic convergence property ensures reliable progression toward a stationary point, though global optimality relies on the multiple-starts strategy. The computational complexity of each EM iteration is O(n J K), where n is the number of observations, J the number of manifest variables, and K the number of latent classes, assuming categorical items with a fixed small number of response categories; this linear scaling in dataset size makes the method efficient for moderate-scale problems (e.g., n < 10^4, J < 50, K < 10), though the number of iterations (often 20–100) and multiple starts can increase total runtime. For very large datasets, approximations like online EM variants may be employed.^[23] As a numerical illustration, consider the classic Stouffer-Toby dataset (Stouffer & Toby, 1951), consisting of 216 respondents' binary responses to four role-conflict situations, aggregated into a 2×2×2×2 contingency table. Applying the EM algorithm for a two-class model (universalistic vs. particularistic orientations), initial random starts lead to updates in expected class counts and conditional probabilities over iterations, converging after approximately 10–20 steps to final prevalences around 0.55 and 0.45, with a log-likelihood corresponding to a deviance of 2.72 on 8 degrees of freedom, resolving observed dependencies better than independence models. Parameter updates in early iterations show class assignments shifting from uniform posteriors to more distinct profiles, increasing the likelihood monotonically.^[24]

Bayesian approaches

Bayesian approaches to estimating latent class models treat the class membership probabilities \pi = (\pi_1, \dots, \pi_K) and item response probabilities \theta_{jkm} (the probability that respondents in class k endorse response m to item j) as random variables, incorporating prior beliefs to derive the full posterior distribution over all parameters and latent class assignments.^[25] This framework contrasts with the frequentist Expectation-Maximization algorithm by enabling direct quantification of uncertainty in parameter estimates and class assignments through posterior sampling.^[26] Common prior specifications leverage conjugate distributions for computational tractability. The class proportions \pi are typically assigned a Dirichlet prior, \pi \sim \text{Dirichlet}(\alpha_1, \dots, \alpha_K), where symmetric choices like \alpha_k = 1 for all k yield a uniform non-informative prior that assumes no a priori preference for class sizes.^[25] For the item response probabilities \theta_{jkm}, which are constrained to lie between 0 and 1, Beta priors are used, \theta_{jkm} \sim \text{Beta}(a_{jkm}, b_{jkm}), often with non-informative settings like a_{jkm} = b_{jkm} = 1 to reflect ignorance about response endorsement rates while enforcing the probability constraints.^[26] These priors facilitate closed-form updates in posterior inference. Posterior inference in Bayesian latent class models is commonly performed using Markov chain Monte Carlo (MCMC) methods, particularly Gibbs sampling, which iteratively draws from the full conditional distributions of the parameters given the data and other parameters.^[25] The full conditional for \pi is Dirichlet, updated based on the observed class counts from current latent assignments, while the conditionals for \theta_{jkm} are Beta, incorporating the number of endorsements in each class.^[26] For cases with more complex dependencies, such as variable selection or non-conjugate priors, Metropolis-Hastings steps within a hybrid MCMC sampler are employed to propose and accept parameter values proportional to their posterior density.^[27] To enhance efficiency, collapsed samplers integrate out the latent class assignments analytically, reducing the dimensionality of the sampling space and improving mixing.^[27] Practical MCMC implementation involves discarding an initial burn-in period (e.g., 2,500 iterations) to reach stationarity, thinning the chain (e.g., retaining every 10th sample) to mitigate autocorrelation, and monitoring convergence via diagnostics like the Gelman-Rubin statistic across multiple chains.^[25] These Bayesian methods offer key advantages over point-estimate approaches, as they naturally handle uncertainty in latent class assignments by providing posterior distributions over the allocation variables z_i for each observation i, allowing probabilistic interpretations of membership.^[25] Additionally, credible intervals derived from the posterior quantiles offer a principled way to assess parameter precision, such as the variability in \theta_{jkm}, which is particularly useful in small-sample settings or when classes are imbalanced.^[26] Recent advances since 2020 have integrated variational inference with Bayesian latent class models to approximate posteriors more rapidly for large-scale datasets, such as electronic health records involving millions of observations.^[28] By optimizing a lower bound on the marginal likelihood, variational Bayes methods achieve computational speeds orders of magnitude faster than full MCMC (e.g., under 10 seconds versus 10 minutes) while maintaining acceptable accuracy for phenotyping tasks, though they require careful hyperparameter tuning to avoid underestimation of posterior variance.^[28]

Finite mixture models

Finite mixture models provide a flexible framework for modeling the distribution of data arising from a heterogeneous population composed of a finite number of unobserved subpopulations, or components. The overall probability density (or mass) function for an observation \mathbf{y} is expressed as a convex combination of K component densities:

p(\mathbf{y}) = \sum_{k=1}^K \pi_k f_k(\mathbf{y} \mid \boldsymbol{\theta}_k),

where \pi_k > 0 denotes the mixing proportion for the k-th component (with \sum_{k=1}^K \pi_k = 1), and f_k(\mathbf{y} \mid \boldsymbol{\theta}_k) is the density (or mass) function of the k-th component, parameterized by \boldsymbol{\theta}_k.^[29] This formulation allows the model to approximate complex distributions by blending simpler parametric forms, such as Gaussian densities for continuous data in Gaussian mixture models (GMMs).^[29] The latent class model (LCM) represents a specific instance of the finite mixture model tailored to categorical data, where each component density f_k is specified as a product of multinomial distributions for the observed indicators, assuming local independence conditional on the latent class.^[30] In contrast, GMMs extend the framework to continuous variables by using multivariate normal densities for f_k, enabling the modeling of unimodal or multimodal continuous distributions without the discreteness constraint of LCM.^[29] This distinction highlights how finite mixture models generalize beyond the discrete setting of LCM to accommodate various data types through appropriate choices of f_k.^[30] Parameter estimation in finite mixture models parallels that in LCM, relying on the expectation-maximization (EM) algorithm to maximize the observed-data likelihood, which is intractable directly due to the latent component memberships.^[31] In the E-step, posterior probabilities of component membership are computed using current parameter estimates; in the M-step, these serve as weights to update the mixing proportions \pi_k and component parameters \boldsymbol{\theta}_k by maximizing a complete-data likelihood surrogate.^[29] Unlike LCM, where probabilities from multinomial components are used, the EM updates here involve density evaluations from f_k, accommodating continuous cases like GMMs.^[31] A primary difference from LCM lies in the treatment of variable dependencies: general finite mixture models model the joint distribution f_k(\mathbf{y} \mid \boldsymbol{\theta}_k) without imposing local independence, allowing correlations within components, whereas LCM enforces independence given the class for identifiability with categorical indicators.^[32] Consequently, finite mixture models find broader applications in nonparametric density estimation and probabilistic clustering (e.g., soft assignments via posteriors), while LCM emphasizes hard classification into discrete latent classes for discrete data analysis.^[29] The origins of finite mixture models trace back to Karl Pearson's 1894 work, where he fitted a two-component Gaussian mixture to cranial measurements of crabs using moments-based methods, establishing the approach for dissecting heterogeneous distributions well before the formalization of LCM in the mid-20th century.^[33]

Latent profile analysis

Latent profile analysis (LPA) serves as a continuous-data analog to the latent class model, employing Gaussian mixture models to identify unobserved subpopulations based on patterns in continuous observed variables.^[34] In LPA, the conditional distribution of the observed variables Y given the latent class C = k is modeled as a product of univariate normal distributions across indicators j, such that

P(Y \mid C = k) = \prod_j \mathcal{N}(\mu_{jk}, \sigma_{jk}^2 \mid Y_j),

where \mu_{jk} and \sigma_{jk}^2 represent the class-specific means and variances, respectively.^[35] This formulation assumes local independence among the indicators within each profile, allowing the model to capture distinct "profiles" of continuous traits or behaviors in the population. As a person-centered approach within the broader finite mixture model framework, LPA posits that heterogeneity in continuous data arises from a finite number of latent profiles, each characterized by unique parameter values. Compared to the standard latent class model, which relies on multinomial distributions for categorical indicators, LPA substitutes normal distributions to accommodate continuous data while preserving the core elements of class membership probabilities \pi_k and the conditional independence assumption.^[35] This adaptation enables LPA to delineate subgroups differing in levels or patterns across continuous measures, such as psychological scales or physiological metrics, without discretizing the data.^[34] The resulting profiles provide interpretable summaries of population heterogeneity, often revealing meaningful subtypes that inform theory and intervention in fields like psychology and education.^[36] Model selection in LPA involves evaluating fit indices and classification quality to determine the optimal number of profiles. Common metrics include the Bayesian Information Criterion (BIC) and Akaike Information Criterion (AIC) for overall fit, alongside the Lo-Mendell-Rubin likelihood ratio test (LMR-LRT) to compare nested models.^[37] For classification precision, entropy measures the average certainty of profile assignments, with values exceeding 0.70 indicating good separation; additionally, average posterior probabilities should surpass 0.80 for reliable classification.^[37] These criteria ensure the selected model balances parsimony, fit, and substantive interpretability.^[35] Extensions of the basic LPA relax the local independence assumption by incorporating covariance matrices to model correlations among indicators within profiles, often through factor mixture models that integrate latent factors across classes.^[36] This allows for more realistic representations of data where variables are interrelated, enhancing the model's flexibility for complex structures. LPA is frequently implemented in software packages such as Mplus, flexMIRT, or R's mclust library, which also support latent class models, thereby enabling seamless hybrid analyses combining discrete and continuous indicators.^[22]

Applications

In the social sciences, the latent class model serves as a key tool for identifying unobserved subgroups among survey respondents, particularly in segmenting behavioral patterns and attitudes captured through categorical items such as multiple-choice questions on policy preferences. This approach enables researchers to uncover heterogeneous populations that may not be apparent from simple descriptive statistics, allowing for a deeper understanding of how individuals cluster based on shared response profiles to items measuring social attitudes or behaviors. For instance, it has been applied to dissect variations in public opinion on topics like welfare policies or civil rights, revealing distinct respondent types that reflect underlying attitudinal structures.^[2] Paul Lazarsfeld's foundational work applied latent structure analysis—a precursor to modern latent class modeling—to survey data on attitudes and behaviors in early studies, demonstrating how the model could parse complex data into meaningful subgroups. This influenced subsequent research in political sociology and beyond. In contemporary settings, the model facilitates segmentation of social attitudes, exemplified by a 3-class solution that differentiates liberal, moderate, and conservative ideologies through patterns of agreement on issues like government intervention and social equality in national surveys.^[38]^[2] The latent class model integrates seamlessly with covariates through latent class regression, which predicts class membership using external predictors such as age, education, or socioeconomic status, thereby explaining the drivers of subgroup formation in social data. For example, in studies of political participation, demographic covariates have been shown to significantly influence probabilities of belonging to activist-oriented versus passive respondent classes. This extension enhances the model's utility for causal inference in social research.^[39] Key advantages of the latent class model in this domain include its ability to account for measurement error inherent in categorical survey data, where respondents' answers may reflect noise rather than true attitudes, by estimating conditional probabilities within classes. Additionally, the probabilistic assignment of individuals to classes—rather than hard clustering—provides a more realistic representation of ambiguity in human behavior, aiding interpretable insights into subgroup dynamics without forcing binary categorizations.^[40]^[1] Empirical applications to large-scale surveys, such as the General Social Survey, consistently indicate that models with 3 to 5 classes often yield the optimal balance of fit and parsimony for capturing multifaceted attitudinal structures, as evidenced by analyses of responses to moral and political items.^[2]

Market research and health studies

In market research, latent class models are widely applied for customer segmentation, particularly to identify distinct groups based on categorical transaction data such as purchase behaviors and brand interactions. For instance, a study utilizing latent class analysis on social commerce patterns identified three consumer segments—social patrons, wary explorers, and sporadic explorers—differing in trust and usage behaviors, enabling tailored marketing strategies that enhanced engagement among active groups.^[41] Another application in the pharmaceutical sector employed latent class factor models to segment markets by patient preferences and loyalty metrics, revealing heterogeneous responses to branding efforts that informed targeted promotional campaigns.^[42] In health studies, latent class models facilitate trajectory modeling of disease progression using longitudinal categorical data, such as symptom severity ratings over time. These models uncover subgroups with varying patterns, for example, identifying classes of patients with stable, worsening, or improving symptom profiles in chronic conditions like cancer or mental health disorders.^[43] Applications during the COVID-19 pandemic have leveraged latent class analysis to identify symptom-based profiles, such as a 2024 study delineating six distinct classes (e.g., paucisymptomatic, influenza-like with respiratory impairment) among primary care patients in early waves, with variations in outcomes like hospitalization rates.^[44] More recent work as of 2025 has used latent class analysis to identify mental health subgroups and associated factors among adolescents, informing targeted interventions.^[45] Latent class models are often integrated with survival analysis in hybrid frameworks to handle time-to-event data alongside categorical outcomes, such as predicting disease onset or recurrence within identified classes. Joint latent class models, for example, link longitudinal symptom trajectories to survival probabilities, allowing researchers to estimate class-specific hazard rates for events like hospital readmission.^[46] These applications enable targeted interventions that improve outcomes and efficiency; in market research, personalized marketing derived from latent class segmentation has been shown to improve return on investment in case studies by optimizing resource allocation to responsive segments.^[47] In health contexts, class-based clustering supports precision medicine, such as customizing treatment plans for symptom trajectory groups to reduce progression risks. An emerging trend involves scalable variants of latent class models for big data applications, processing millions of records from electronic health records or consumer databases through parallel computing and approximate inference methods. These advancements, such as those extending latent variable models for industrial-scale clustering, facilitate real-time segmentation in dynamic environments like e-commerce and epidemiology surveillance. Recent extensions as of 2024 include multilevel latent class analysis for environmental behavior patterns, linking psychological factors to sustainability practices.^[48]^[49]

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[PDF] Latent Class Analysis
Jan 12, 2022 · To complete the model specification, we need to define the form of the conditional densities. ) |( c yf i ij. = ν . In the classical LC model ...
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[PDF] Latent Class Analysis - Statistical Horizons
▫ Introduction to latent class analysis (LCA). ▫ The LCA mathematical model. ▫ Latent class homogeneity and separation. ▫ Brief SAS tutorial. ▫ SAS PROC ...
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[PDF] Maximum Likelihood Estimation in Latent Class Models For ...
We draw parallels between the statistical and geomet- ric properties of latent class models and we illustrate geometrically the causes of many problems ...
[20]
Global Identifiability of Latent Class Models with Applications to ...
Aug 24, 2019 · Identifiability of statistical models is a fundamental regularity condition that is required for valid statistical inference.
[21]
Good Item or bad—can Latent Class Analysis Tell?: The Utility of ...
Mar 28, 2008 · Use of latent class analysis with two indicators. Three binary indicator variables are needed for a model of two latent classes to be just ...
[22]
A Comparison of Label Switching Algorithms in the Context of ...
Handling the label switching problem in latent class models via the ECR algorithm. ... Addressing the problem of switched class labels in latent variable mixture ...
[23]
[PDF] Deciding on the Number of Classes in Latent Class Analysis and ...
Mixture modeling is a widely applied data analysis technique used to identify unobserved heterogeneity in a population. Despite mixture models' usefulness ...
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A Tensor-EM Method for Large-Scale Latent Class Analysis ... - arXiv
Mar 30, 2021 · Methodologically, we propose to use a moment-based tensor power method in the first step, and then use the obtained estimators as initialization ...Missing: strategies | Show results with:strategies
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[PDF] 36-720: Latent Class Models - Statistics & Data Science
Oct 17, 2007 · Latent Variable Models and Factor. Analysis. Oxford Univ Press. Hagenaars, J. A. & McCutcheon, A. L. (2003). Applied Latent Class Analysis.
[26]
Bayesian Latent Class Analysis Tutorial - PMC - NIH
This article is a how-to guide on Bayesian computation using Gibbs sampling, demonstrated in the context of Latent Class Analysis (LCA).
[27]
A Tutorial on Bayesian Latent Class Analysis Using JAGS
Label switching refers to the phenomenon where the likelihood of a mixture model is invariant for any permutations of its component labels. Let PK be the set of ...3.3 Label Switching · 6 Bayesian Lca Using Jags · 7.3 Bayesian Latent Growth...
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[PDF] Bayesian variable selection for latent class analysis using a ...
Both selection tasks are carried out simultaneously using an. MCMC approach based on a collapsed Gibbs sampling method, whereby several model parameters are ...
[29]
Frontiers | Variational Bayes latent class analysis for EHR-based phenotyping with large real-world data
### Summary of Variational Inference for Bayesian Latent Class Analysis (Post-2020)
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Finite Mixture Models | Wiley Series in Probability and Statistics
Author(s):. Geoffrey McLachlan, David Peel, ; First published:18 September 2000 ; Print ISBN:9780471006268 | ; |Online ISBN:9780471721185 | ; |DOI:10.1002/ ...
[31]
Latent Class Analysis and Finite Mixture Modeling - Oxford Academic
However, some degree of local independence is necessary for latent class model identification. ... However, in most all applications of LCA, the number of classes ...25 Latent Class Analysis And... · Latent Profile Analysis · Latent Class Regression<|control11|><|separator|>
[32]
Maximum Likelihood from Incomplete Data via the EM Algorithm - jstor
A broadly applicable algorithm for computing maximum likelihood estimates from incomplete data is presented at various levels of generality.
[33]
[PDF] Mixture models: latent profile and latent class analysis
Latent class analysis (LCA) and latent profile analysis (LPA) recover hidden groups from data, similar to clustering, but more flexible. LCA is a binomial ...
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III. Contributions to the mathematical theory of evolution - Journals
The object of the present paper is to discuss the dissection of abnormal frequency-curves into normal curves. The equations for the dissection of a frequency- ...Missing: URL | Show results with:URL
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Latent profile analysis: A review and “how to” guide of its application ...
... continuous variables (Halbesleben, 2010 ... A composite that indicates the overall ability of a mixture model to return well-separated profiles ( ...
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https://doi.org/10.1037/a0036918
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https://www.tandfonline.com/doi/abs/10.1080/10705510701575396
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Deciding on the Number of Classes in Latent Class Analysis and ...
Deciding on the Number of Classes in Latent Class Analysis and Growth Mixture Modeling: A Monte Carlo Simulation Study. Karen L. Nylund Graduate School of ...
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[PDF] Paul Lazarsfeld's Methodological Innovations and Their Importance ...
Paul Lazarsfeld developed an efficient model of scientific sociological research that used a combination of several quantitative and qualitative methods and ...
[40]
Modeling predictors of latent classes in regression mixture models
The purpose of the current study is to provide guidance on a process for including latent class predictors in regression mixture models.
[41]
Latent class analysis. - APA PsycNet
Latent class analysis (LCA) is a method for testing theories about unobserved (hypothesized) categorical variables that are measured (imperfectly) by observed ...
[42]
Consumer segments in social commerce: A latent class approach
Dec 22, 2016 · This has encouraged researchers to use latent class analysis to categorize online shoppers (Bhatnagar and Ghose, 2004) and non-shoppers ( ...
[43]
(PDF) Latent class factor models for market segmentation
Aug 6, 2025 · In this paper, an extension of traditional latent class analysis, called latent class factor model, is applied to market segmentation. This ...
[44]
Latent Class Analysis Reveals Distinct Subgroups of Patients Based ...
Latent class analysis was used to identify patient subgroups with distinct symptom experiences based on self-report data on symptom occurrence using the ...Original Article · Latent Class Analysis · Discussion
[45]
COVID-19 profiles in general practice: a latent class analysis - PMC
Jun 6, 2024 · Latent class analysis (LCA) is a patient-centred approach specifically designed to reliably identify subgroups of patients when they exist. LCA ...Missing: 2020s | Show results with:2020s
[46]
Joint latent class models for longitudinal and time-to-event data
Apr 19, 2012 · This method, called a joint latent class model (JLCM), considers the population of subjects as heterogeneous, and assumes that it consists of ...
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Unlocking the next frontier of personalized marketing - McKinsey
Jan 30, 2025 · Using improved analytics models, brands and retailers can better provide valuable offers to microcommunities wherever they want to engage.About The Authors · Relevant Marketing Through... · A Tech-Enabled Evolution...Missing: latent class<|control11|><|separator|>
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Latent variable models in the era of industrial big data: Extension ...
For the past two decades, LVMs have been widely used in industrial data clustering, monitoring, diagnosis, visualization, regression, classification (Jing and ...