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A nominal variable is a variable measured in current dollars (the value of the dollar for the specific period discussed), and a real variable is a variable measured in constant dollars (the value of the dollar for the base period). That is, a real variable adjusts for the effects of inflation.
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Example of nominal variable and real variable?
A nominal variable is one where observations are classified to categories eg small, medium and large for t-shirts. A real variable is one that takes numerical values, such as shirt size 12, 14, 16 etc. A real value may be a continuous (as opposed to discrete) variable but the very act of recording the observation usually results in the continuous variable being replaced by a discrete one.
Is population a continuous variable?
No, it is a discrete variable. Since there are no fractional people, a count of people can only be a positive integer. For a variable to be continuous, it must be able to take on *any* real value in a domain. So, if populations could take on any real value, including rational and irrational ones, between 1 and say 10^12, including ones like 6.1385391..., then population would be a continuous variable.
How do you interpret coefficient of dummy variable?
To interpret the coefficient of a dummy variable is to follow all of the steps of the equation that is being used as if the dummy variable was a real one.
What is a random variable?
A random variable is a function that assigns unique numerical values to all possible outcomes of a random experiment. A real valued function defined on a sample space of an experiment is also called random variable.
What is a continuous random variable?
In the simplest setting, a continuous random variable is one that can assume any value on some interval of the real numbers. For example, a uniform random variable is often defined on the unit interval [0,1], which means that this random variable could assume any value between 0 and 1, including 0 and 1. Some possibilities would be 1/3, 0.3214, pi/4, e/5, and so on ... in other words, any of the numbers in that interval. As another example, a normal random variable can assume any value between -infinity and +infinity (another interval). Most of these values would be extremely unlikely to occur but they would be possible. The random variable could assume values of 3, -10000, pi, 1000*pi, e*e, ... any possible value in the real numbers. It is also possible to define continue random variables that assume values on the entire (x,y) plane, or just on the circumference of a circle, or anywhere that you can imagine that is essentially equivalent (in some sense) to pieces of a real line.
