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Conditional Dependence Diagnostic in the Latent Class Model: a Simulation Study

Subtil, Ana; Oliveira, M. Rosário; Goncalves, Luzia

Statistics and Probability Letters, 82(7) (2012), 1407-1412
http://dx.doi.org/10.1016/j.spl.2012.03.030

The classical latent class model assumes the hypothesis of conditional independence. We explore tools commonly used to validate this hypothesis (correlation residual plot, log-odds ratio check plot, and known goodness of fit tests) to make practitioners aware of these tools’ shortcomings in correctly identifying local dependence.