Meaning:-
In simple words,a variable is a quantity or magnitude which varies during a specified time period given. It can be defined as per oxford dictionary of economics
'A quantity which is liable to change is known as variable.' For example, these variables are like price, interest rates, income levels, quantity of goods etc. Generally these variables take different possible values which go on increasing or decreasing.
classification of variables:-
Variables may be classified into two parts as under:
1. Independent and dependent variables.
2. Exogeneous and endogeneous variables.
Let us explain these two types of variables
(i) Independent and dependent variables:- The independent variables refers to those variables manipulated or changed while dependent variables provide observed results of independent variables being manipulated.For example, in demand theory price is independent variables and quantity demanded is dependent variable.In this case, we see that when an experiment is conducted, some variables are manipulated by the experimenter and consequently measured from the subject. Therefore, former variable is called independent variable while the latter is known as dependent variables.
(ii) Exongeneous and endogeneous variables:-Exogeneous variables refers those which are determined or set outside the model.These are contrasted by exogeneous variables which are determined by inside the model.So,the value of the endogenous variables will change the exogeneous variables changes.
In simple words,a variable is a quantity or magnitude which varies during a specified time period given. It can be defined as per oxford dictionary of economics
'A quantity which is liable to change is known as variable.' For example, these variables are like price, interest rates, income levels, quantity of goods etc. Generally these variables take different possible values which go on increasing or decreasing.
classification of variables:-
Variables may be classified into two parts as under:
1. Independent and dependent variables.
2. Exogeneous and endogeneous variables.
Let us explain these two types of variables
(i) Independent and dependent variables:- The independent variables refers to those variables manipulated or changed while dependent variables provide observed results of independent variables being manipulated.For example, in demand theory price is independent variables and quantity demanded is dependent variable.In this case, we see that when an experiment is conducted, some variables are manipulated by the experimenter and consequently measured from the subject. Therefore, former variable is called independent variable while the latter is known as dependent variables.
(ii) Exongeneous and endogeneous variables:-Exogeneous variables refers those which are determined or set outside the model.These are contrasted by exogeneous variables which are determined by inside the model.So,the value of the endogenous variables will change the exogeneous variables changes.
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