The path /usr/java/latest/bin/java should actually point to where java was extracted. So, if you extract java to: /usr/jre<version>, then that command should be:

/usr/sbin/alternatives --install /usr/bin/java java /usr/jre<version>/bin/java 2

If you simply copy and paste what's existing, then you'll get problems when you go:

which java

It'll complain that it can't find java in the path, like so:

[root@localhost ~]# java -version
-bash: /usr/bin/java: No such file or directory

And:

[root@localhost ~]# which java
/usr/bin/which: no java in (/usr/kerberos/sbin:/usr/kerberos/bin:/usr/lib/ccache:/usr/local/sbin:/usr/local/bin:/sbin:/bin:/usr/sbin:/usr/bin:/root/bin)