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In step 2, classification errors are introduced when assigning individuals to latent classes. The estimates of the association with the external variables need to be corrected for classification errors to prevent a downward bias (Bolck, Croon, and Hagenaars, 2004). The Step3 module implements two bias adjustments procedures (Vermunt, 2010).
If included, additional information pertaining to the CFactor effects appear in the Parameters output and to CFactor scores in the Standard Classification, the ProbMeans, and the Classification Statistics output.
Latent class (LC) choice models analyze these data in a way that accounts for heterogeneity by allowing different population segments (latent classes) to express different preferences in making their choices.
In this way, Latent GOLD®’s factor module has several advantages over traditional factor analysis:
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