DEFINITION of 'Manifest Variable'
A variable that can be directly measured or observed. It is the opposite of a latent variable, which can not be directly observed. Manifest variables are used in latent variable statistical models, which test the relationships between a set of manifest variables and a set of latent variables. Manifest variables are considered either continuous or categorical (a countable range).
INVESTOPEDIA EXPLAINS 'Manifest Variable'
Statisticians use several different analysis tests when examining manifest variables and latent variables. The four most frequently used models are factor analysis, latent trait analysis, latent profile analysis, and latent class analysis. Which model is ultimately used depends on whether the manifest variables are continuous or categorical, and whether the latent variables are continuous or categorical.

Endogenous Variable
A classification of a variable generated by a statistical model ... 
Sample
A subset containing the characteristics of a larger population. ... 
Statistics
A type of mathematical analysis involving the use of quantified ... 
Correlation
In the world of finance, a statistical measure of how two securities ... 
Sampling
A process used in statistical analysis in which a predetermined ... 
Altman ZScore
The output of a creditstrength test that gauges a publicly traded ...

What is a "linear" exposure in Value at Risk (VaR) calculation?
A linear exposure in the valueatrisk, or VaR, calculation is represented by positions in stocks, bonds, commodities or ... Read Full Answer >> 
What is the criteria for a simple random sample?
Simple random sampling is the most basic form of sampling and can be a component of more precise, more complex sampling methods. ... Read Full Answer >> 
What are some examples of ways that sensitivity analysis can be used?
Sensitivity analysis is an analysis method that is used to identify how much variations in the input values for a given variable ... Read Full Answer >> 
How is the 8020 rule (Pareto's Principle) used in macroeconomics?
The 8020 rule was first used in macroeconomics to describe the distribution of wealth in Italy in the early 20th century, ... Read Full Answer >> 
What are some of the uses of the coefficient of variation (COV)?
In statistics, the coefficient of variation (COV) is a simple measure of relative event dispersion. It is equal to the ratio ... Read Full Answer >> 
What is the difference between systematic sampling and cluster sampling?
Systematic sampling and cluster sampling differ in how they pull sample points from the population included in the sample. ... Read Full Answer >>

Investing Basics
What Are The Odds Of Scoring A Winning Trade?
Just because you're on a winning streak doesn't mean you're a skilled trader. Find out why. 
Fundamental Analysis
Financial Markets: Random, Cyclical Or Both?
Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument. 
Investing Basics
Economic Indicators That DoItYourself Investors Should Know
Understanding these investing tools will put the market in your hands. 
Forex Education
Trading With Gaussian Models Of Statistics
The entire study of statistics originated from Gauss and allowed us to understand markets, prices and probabilities, among other applications. 
Investing
The Strong Dollar’s (Real) Toll On Tech Stocks
A large portion of U.S. technology companies’ sales occur overseas, given the strong international business and consumer demand from many U.S. tech firms. 
Fundamental Analysis
How to Calculate a Coverage Ratio
In broad terms, the higher the coverage ratio, the better the ability of the enterprise to fulfill its obligations to its lenders. 
Fundamental Analysis
Calculating the HerfindahlHirschman Index (HHI)
The HerfindhalHirschman Index, (HHI) is a measure of market concentration and competition among market participants. 
Fundamental Analysis
Calculating Net Interest Margin
Net interest margin is a metric used to measure the effectiveness of a company’s investment decisions, particularly financial institutions. 
Economics
Why The U.S. Economy Is Ready For Liftoff
Though the U.S. economy is once again underperforming expectations, as it has for the past five years, the economy is ready for a (Fed) interest rate hike. 
Fundamental Analysis
Calculating Book Value of Equity Per Share (BVPS)
Book value of equity per share compares the total shareholder equity, as stated in the company’s balance sheet, to the total number of shares outstanding.