A random variable is a variable whose value is not known in advance but is determined by some random process. Random variables can be either discrete or continuous. Discrete random variables take on a finite or countable number of values, while continuous random variables take on any value within a certain range.

##### What is variables in statistics?

In statistics, a variable is a value that can change or be assigned different values. For example, the height of a person is a variable that can be measured in inches, feet, or centimeters. The weight of a person is another variable that can be measured in pounds, kilograms, or stones.

#### Why do we use random variables?

Random variables are used in economics to model uncertainty. They allow us to quantify the risk associated with certain events, and to make decisions in the face of uncertainty.

For example, consider a situation where you are trying to decide whether to invest in a new business venture. There is always some risk associated with any investment, and it is often difficult to know exactly how much risk there is. By using a random variable to model the potential return on investment, we can calculate the expected return and make a more informed decision about whether or not to invest.

Another example where random variables are used in economics is in the pricing of financial derivatives. Derivatives are financial instruments whose value is derived from the value of other assets, such as stocks or commodities. Because the value of derivatives can be very volatile, they are often priced using stochastic methods that take into account the uncertainty of the underlying asset prices. What are the 2 types of random variable? There are two types of random variables: discrete and continuous. Discrete random variables take on a finite or countable number of values, while continuous random variables take on an uncountable number of values.

##### What is random variables and its types?

A random variable is a variable whose value is unknown or uncertain. There are two types of random variables: discrete and continuous.

Discrete random variables take on a finite or countable number of values, while continuous random variables take on an infinite number of values.

How do you classify random variables as discrete or continuous? A random variable is a variable whose value is unknown or random. There are two types of random variables: discrete and continuous.

A discrete random variable is a variable whose value is a whole number. A continuous random variable is a variable whose value is a real number.