Question

Is it appropriate to treat value changes as Bernoulli random variables? Why or Why not?

Answer 1

it is not appropriate to treat value changes as Bernoulli random variables.

because value changes take place within an interval .

It is not the discrete probablity distribution so we can't assign value changes as bernoulli random variable.

But some times we can say in this way if value changes a fixed number we can assume that is success then we can say success occurs we assign 1 and if valuedoes not change then we assign 0 like an Indicator variable in this case we can say it can be bernoulli variable .

But in reality I advice that it should not be treated as bernoulli variable.