Latent variable

Alright little one, have you ever seen a plant? You know how it grows taller and taller every day but you can't really see how much it's grown until you compare it to how it looked before? Well, that's a bit like a latent variable.

A latent variable is like a hidden thing that we can't see with our eyes, but we know it's there because we can see its effects. It's like a secret ingredient in a recipe that makes the food taste good.

Let's say we want to measure how happy people are. We can't just ask someone "Hey, are you happy?" because they might say yes but they might not really mean it. So instead, we might ask questions about things that happy people do, like spending time with friends or volunteering for a good cause. These things are indicators of happiness, but they're not happiness itself. Happiness is the latent variable that we can't actually see, but we know it's there because of these indicators.

Another example might be intelligence. We can't measure someone's intelligence directly because it's not something we can see or touch. So instead, we might give them a test that measures things like problem-solving skills or the ability to remember things. These things are indicators of intelligence, but they're not intelligence itself. Intelligence is the latent variable that we can't actually see, but we know it's there because of these indicators.

So, to sum it up, a latent variable is like a hidden thing that we can't see directly but we know it's there because of the effects it has on other things.