Question

When you ask someone out on a date, the three variables are how much they like you, how you ask them out, and if they say yes. What are the exogenous and endogenous variables? Why?

Answer 1

Exogenous variables refers to that set of variables which are not affected by other variables in the system and are independent. Exogenous itself means outside to produce. While Endogenous refers to that set of variables that are affected by other variables in the system and thus are somewhat dependent variables.

In the above question how much they like you is an exogenous variable and thus is not dependent on the other variable. The same is with how you ask them out. But if they say yes is depenedent on how much they like you and how you ask them out. Thus, if they say yes is an endogenous variable.

The reason for the above is simply because exogenous variables are mainly fixed variables and influence or affect other variables present in the system.