A latent variable is one of the variable factors which is non-observable but affects other behaviors which are measurable. In psychology, latent variables deal with abstract variables such as intelligence, anxiety, and motivation, and they are variables which are aimed at directly measuring and hypothesizing with observable indicators such as test scores or other survey data. Psychologists attempt to infer the value of such variables through indicators that are observable. Statistically sophisticated models like factor analysis or structural equations are used. The presence of latent variables is crucial knowledge for psychologists as they assess complicated mental processes. Example: Intelligence is a latent variable which is measured with the use of verbal and spatial reasoning tests.
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