A measurement is said to have some “latitude” if it may return some figure within some range rather than a specific figure. It seems a strange use of the word, but that’s what it means.
The forum is a good oportunity to improve english.
Latitude seems to translate to spanish as “tolerancia” (what, by it’s side, seems to have a literal translation on “tolerance”; I have been consulting google translator and looks that tolerance has, in english,one of the meanings that tolerancia has in spanish -the one concerning, for instance, social tolerance about religion, habitudes and so on).
I have asked my daugthers and son in law, that are engineers and work in England, for the translation of holgura: My son has answered by writing: "Slack or play or looseness "
In fact an holgura is caused by mechanical wearing while the tolerancia is what you explain: “A measurement is said to have some “latitude” if it may return some figure within some range rather than a specific figure”; in drawings and blueprints it appears as a “main figure” plus (minus) one (or two) much smaller fugure(s).
Conclusion: you are rigth, the allowed latitude in a mechanism (linear pot) causes uncertainty in the position of the cursor (fortunately, cursor is the same in spanish). The holgura (slack) will cause a bigger one.
(I had this problem while working -I’m engineer too-; the case was of a machine that had to position a pivot within a ± 1 mm latitude in an span of up to 2.000 mm. The supplier sent initally the machine with linear pots installed; they had to change them by encoders).