Latent class analysis enables you to find clusters of observations for categorical response variables. A latent variable is an unobservable grouping variable. Each level of the latent variable is called a latent class. The Latent Class Analysis platform fits a latent class model and determines the most likely cluster or latent class for each observation. In most situations, a subject matter expert uses the results of a latent class analysis to create definitions for each latent class based on the characteristics of the class.