A latent variable model is a statistical model that relates a set of variables (so-called manifest variables) to a set of latent variables.
DEFINITION of 'Functional Obsolescence'. A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.The term is commonly used in real estate, but has a wide application.Next Up. reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed. The term is commonly used in real estate, but has a wide application. Next Up.
This would require rental comparables for the subject with the functional obsolescence compared to a rental without the functional obsolescence - a near impossibility. About the Author. Philip G. Spool, ASA, is a State-Certified General Real Estate Appraiser in Florida, appraising since 1973.