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{{merge|latent variable model}}
'''Latent variables''', as opposed to [[observable variable]]s, are [[variable]]s that are not directly observed but are rather inferred from other variables that are observed and directly measured. Latent variables are also called '''hidden variables''', '''model parameters''', '''hypothetical variables''' or '''hypothetical constructs'''. Examples include [[quality of life]], business confidence, morale, happiness, conservatism. The use of latent variables is common in [[social science]]s, [[robotics]], and to an extent [[economics]]; but the exact definition of latent variables varies in these domains. [[John F. MacGregor]] at [[McMaster University]] pioneered their use in [[chemical engineering]] and [[control systems]] by using them as controlled variables in [[model predictive control]].
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