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HB and LC Prior Simulation Settings

Hello,
I have a question regarding my prior Latent Class simulation settings.
In HB I used the following settings for my simulation:

1. Study (n=800): 20.000 Itertions, 50.000 draws, 10 prior degrees of dreedom, 0.5 prior variance
2. Study (n=500):20.000 Itertions, 50.000 draws, 5 prior degrees of dreedom, 0.5 prior variance
Both studies are the same in attributes and levels (only different languages were used)

What would you recommend for LC Settings regarding: max. number of iterations, number of replications and min/max number of groups?
For the 1. Study I was thinking of using 4 groups and for the 2. Study max number of groups = 2.
What about the other factors such as iterations and replications? Does my HB settings have any impact on that? Can I take the default settings of Sawtooth?

Thank you very much!
asked Dec 15, 2017 by Lizzy

1 Answer

0 votes
Selecting the right number of groups for Latent Class is a topic that we could discuss for hours.  You really need to start from the point of thinking about what the goal is: why are you running latent class?  If it is for statistical accuracy and accuracy of predictions, then this guides your decisions regarding how many groups to select.  If the goal is to create a segmentation to drive marketing management strategy, then this guides your decisions in perhaps a different way.

Iterations: 100 is usually sufficient.  I wouldn't change that.

Replications: For preliminary investigation (just to get a feel for how the results may be turning out), just use 2 or 3 replications.  For final work (to be more confident that the solution obtained was not due to an unlucky starting point), use 10 replications.

I assume you are running latent class through our software interface, which only pays attention to the raw choice data (what respondents saw and what they chose).  Latent Class, when run this way, is not affected by anything you've done in a separate HB utility run.
answered Dec 15, 2017 by Bryan Orme Platinum Sawtooth Software, Inc. (134,015 points)
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