What is a 'Manifest Variable'

A manifest variable is a variable that can be directly measured or observed. It is the opposite of a latent variable, which can not be directly observed, and needs a manifest variable assigned to it as an indicator to test whether it is present. 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).

A manifest variable is also known as an observable variable.

BREAKING DOWN '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.

RELATED TERMS
  1. Variable Cost Ratio

    The variable cost ratio compares costs, which fluctuate depending ...
  2. Sensitivity Analysis

    Sensitivity analysis is a technique used to determine how different ...
  3. Variable Cost-Plus Pricing

    Variable cost-plus pricing is a pricing method in which the selling ...
  4. Expected Value

    The expected value is the anticipated value for a given investment ...
  5. Variable Cost

    A variable cost is a corporate expense that changes in proportion ...
  6. Endogenous Variable

    An endogenous variable is a classification of a variable generated ...
Related Articles
  1. Financial Advisor

    Life Insurance: Variable Vs. Variable Universal

    Do you know why you might need one policy versus the other? Read on to find out the difference between Variable and Variable Universal life insurance.
  2. Retirement

    How a Variable Annuity Works After Retirement

    These investments can provide extra income after you retire. Here’s a guide to when and how you will receive the payout.
  3. Investing

    Scenario Analysis Provides Glimpse Of Portfolio Potential

    This statistical method estimates how far a stock might fall in a worst-case scenario.
  4. Retirement

    Variable Annuities With Living Benefits: Worth The Fees?

    Added features can make a variable annuity suitable for certain investors. Find out if it could work for you.
  5. Retirement

    How To Use The 4-Box Strategy For Retirement Income

    In today's volatile market, Generation X can't sit around waiting for things to improve. Gen X must implement innovative strategies for retirement planning.
  6. Investing

    Subaccounts: As Good Their Clone Funds?

    Variable annuity subaccounts are virtual clones of mutual funds but are tracked separately.
  7. Investing

    Bet Smarter With the Monte Carlo Simulation

    This technique can reduce uncertainty in estimating future outcomes.
  8. Investing

    Things Your Annuity Salesperson May Not Tell You

    Your variable annuity salesperson should tell you many things. But there's a chance they'll leave out some crucial details.
RELATED FAQS
  1. How should I interpret a negative correlation?

    Learn more about correlation and how businesses analyze variables. Find out how negative correlations are interpreted by ... Read Answer >>
  2. What are the differences between absorption costing and variable costing?

    Examine the main differences between absorption costing and variable costing, along with the advantages and disadvantages ... Read Answer >>
Trading Center