In LC cluster models containing continuous indicators, how can I determine whether a model should contain a within class correlation between 2 or more of these variables?
A. You can estimate several models and select the one that fits best according to BIC. For example, six types of LC cluster models are reported in Table 1 of the Latent Class Cluster Analysis article. These models differ with respect to a) the specification of class dependent vs. class independent error variances and b) the ‘direct effects’ included in the LC cluster model estimated by LatentGOLD. The 3-class type-5 model is best according to the BIC statistic. Various parameter estimates and standard errors from this ‘final’ model are obtained from the Profile and Parameters Output. Click on dataset #29 and download the data and the model setup file diabetes.lgf containing the specifications for each of the 6 types of 3-class cluster models described in Table 1.
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