Question

If you wanted to model an outcome variable that is defined as whether or not someone will buy a new car within the next 12 months, then what type of random variable would you use to capture this outcome?

-(a)This future outcome is not in fact random and should be modeled in a deterministic fashion

-(b)A discrete random variable

-(c)A continuous random variable

-(d)Either continuous or discrete, it doesn’t matter

Need help! Thank you!

Answer 1

Answer is option B)

Since outcome variable is a binary variable, with only two possible values that either a person will buy a new car or he will not buy .

So it's surely a discrete random variable,

Option a) is wrong, future outcome is surely a random variable, bcoz it's random that the person will buy the car or not, & hence it doesnt involve a deterministic modelling.

It can't be continuous , bcoz only two possible values are possible, yes ( buy) & no ( car is not bought)