# Latent Class Analysis

## Definition of Latent Class Analysis

Latent Class Analysis: A technique used to identify unobserved (latent) classes within a population.

## How is a Latent Class Analysis used?

Latent Class Analysis (LCA) is a statistical technique used to identify latent classes within data sets. These latent classes are clusters of data points with similar characteristics, which can then be studied and analyzed in further detail. It is commonly used in social sciences to uncover the underlying structure of complex phenomena such as consumer behavior, voting trends, and career trajectories.

The technique begins by creating a set of latent variables from the observed data points. This involves using dimension reduction algorithms such as principal component analysis or factor analysis to reduce the number of variables while still preserving much of the original information. The results of this step are then used to generate a series of probabilistic models that can be used to identify statistically significant clustersâ€”or latent classesâ€”within the dataset.

Once these groups have been identified, detailed descriptive analyses can be performed on each group, comparing them on various quantitative and qualitative variables such as age, gender, income level, geographical location, etc. Additionally, researchers may use this information to build predictive models that can make inferences about how individuals will behave when presented with certain stimuli or scenarios based on their membership in a particular class. Finally, it can also be used to look for patterns in behaviors across different classes and make generalizations about behaviors within those classes.