\documentclass[tikz, border=2pt]{standalone}
\usepackage[utf8]{inputenc}
\usepackage{tikz}
\usetikzlibrary{positioning}
\begin{document}
\tikzstyle {hidden}=[circle,dashed, draw=black, minimum size=1cm]
\tikzstyle {latent}=[circle, draw=black, minimum size=1cm]
\tikzstyle {obs}=[circle, draw=black, fill=black!20, minimum size=1cm]
\begin{tikzpicture}[-,>= stealth, node distance=3mm, thick]
\node [obs] at (0,0) (rootobs) {$\textbf X$};
\node [obs, below=3cm of rootobs] (obs_0) {$\textbf x^*$};
\node[latent, right=1cm of rootobs] (hid_1) {$\textbf F_1$} edge[<-] (rootobs);
\node[latent, below=3cm of hid_1] (hid_0) {$\textbf f_1^{*}$}
edge[<-] (obs_0)
edge[<-] (hid_1);
\node [hidden, right=1cm of hid_1] (hidden_1) {$\textbf K_2$} edge[<-] (hid_1);
\node[hidden, below=1cm of hidden_1] (hidden_10) {$\textbf k_2^*$}
edge[<-] (hid_1)
edge[<-] (hid_0);
\node[hidden, below=1cm of hidden_10] (hidden_0) {$k_2^{**}$} edge[<-] (hid_0);
\node [latent, right=1cm of hidden_1] (hid_11) {$\textbf f_2$} edge[<-] (hidden_1);
\node [latent, below=3cm of hid_11] {$f_2^*$}
edge[<-] (hid_11)
edge[<-] (hidden_0)
edge[<-] (hidden_1)
edge[<-] (hidden_10);
\node [obs, right=1cm of hid_11] {$\textbf y$} edge[<-] (hid_11);
\end{tikzpicture}
\end{document}