11. The measurement model estimates the latent variables as a weighted sum of its manifest variables. 12. In SEM diagrams, latent variables are commonly shown as ovals and observed variables as rectangles. 13. His book on Latent variable models ( now in its fourth edition ) remains very popular. 14. In this example, the latent variable refers to political opinion and the latent classes to political groups. 15. First, a distributional form for the latent variable t _ i ^ U needs to be assumed. 16. The unknown quantity may be a parameter of the model or a latent variable rather than an observable variable. 17. Hierarchies of latent variables have emerged as a natural structure in several applications, notably to model text documents. 18. The Expectation maximization algorithm ( EM ) is also one of the most practical methods for learning latent variable models. 19. These parameter-estimates are then used to determine the distribution of the latent variables in the next E step. 20. With SEM, " intelligence " would be the latent variable and the test items would be the observed variables.