Latent categories may be useful in medical diagnosis where the observed indicators are various diagnostic tests or criteria of illness (or different clinicians), with none being certain or ‘gold standard’ indicators of the presence of a disease. One may assess whether a single latent categorisation (e.g. if the latent categories might be ill vs. not ill) underlies several observed binary diagnostic items, none of which provide a ‘gold standard’ test (Rindskopf, 2002).
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