In an economic model, an exogenous variable is one whose value is determined outside the model and is imposed on the model, and an exogenous change is a change in an exogenous variable. In contrast, an endogenous variable is a variable whose value is determined by the model. What areRead More →
Dichotomous variables are categorical variables with two levels. These could include yes/no, high/low, or male/female. To remember this, think di = two. Ordinal variables have two are more categories that can be ordered or ranked. Can a binary variable be ordinal? Binary data is discrete data that can be inRead More →
No. Two things are correlated doesn’t mean one causes other. Correlation does not mean causality or in our example, ice cream is not causing the death of people. What happens when two variables are unrelated? If there is no discernable relationship between two variables, they are said to be unrelated,Read More →