The Observed Variable:
It is the variable that can be measured or observed directly such as age and income.
Latent Variable, or sometimes called unobserved variable:
It is defined as the concept or construct that cannot be measured or observed directly. Rather, it is measured through some other variables called manifest, indicators, or items. Variables such as Motivation and Job satisfaction. For the purpose of measuring the hidden concept, items or questionnaire questions are to be prepared and answered by the respondents.
The observed variables, directly measured, can be used to measure the latent variable, indirectly measured as illustrated in the following figure.
Source: Google Image
It is the variable that can be measured or observed directly such as age and income.
Latent Variable, or sometimes called unobserved variable:
It is defined as the concept or construct that cannot be measured or observed directly. Rather, it is measured through some other variables called manifest, indicators, or items. Variables such as Motivation and Job satisfaction. For the purpose of measuring the hidden concept, items or questionnaire questions are to be prepared and answered by the respondents.
The observed variables, directly measured, can be used to measure the latent variable, indirectly measured as illustrated in the following figure.
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