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Latent variables refer to variables that cannot be directly observed. These variable are defined in terms of observable variables. In narrow sense, "latent variable" is seen/modeled as what generates the observed variables in an implied data generation process. Also called hidden or lurking variables.

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Compute the user and item features in SVD++

As you said SVD can be used to factorize a full matrix without missing value. For sparse matrices we minimize the least square problem to get vector representing latent factors of an item 'qi' and a u …
Sanjiv Singh's user avatar