When you have NOMINAL indicators, for example, your model gives rise to
expected counts that can be compared to observed counts. The distribution
theory is based on the chi-square statistic (L-squared), which has an
associated p-value. When you have CONTINUOUS indicators, your model is based
on normal theory. The parameters being estimated are means, variances, and
covariances. Since the data are continuous and not discrete, you no longer
have a model framework of observed and expected counts. The model is the
normal finite mixture model. Classification can work well with a
good-fitting model. 

 

 


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