Latent class model

A latent class model is a statistical tool used to identify hidden groups within a larger population based on observed behaviors or responses. It assumes that people can be divided into distinct categories (or "classes") that explain their pattern of answers or traits. For example, in customer segmentation, it might reveal different customer groups based on purchasing habits, even if these groups are not directly obvious. This model helps researchers understand and predict behaviors by uncovering underlying, unobserved subgroups that share similar characteristics.