In statistics, a latent class model (LCM) relates a set of observed (usually discrete) multivariate variables to a set of latent variables. It is a type of latent variable model. It is called a latent class model because the latent variable is discrete. A class is characterized by a pattern of conditional probabilities that indicate the chance that variables take on certain values. In statistics, a latent class model (LCM) relates a set of observed (usually discrete) multivariate variables to a set of latent variables. It is a type of latent variable model. It is called a latent class model because the latent variable is discrete. A class is characterized by a pattern of conditional probabilities that indicate the chance that variables take on certain values. Latent class analysis (LCA) is a subset of structural equation modeling, used to find groups or subtypes of cases in multivariate categorical data. These subtypes are called 'latent classes'.