Consider the following regression equation: y = ₀+ ₁x₁+ … + _kx_k+ u In which of the following cases, is 'y' a discrete variable? A)y indicates the gross domestic product of a country B)y indicates the total volume of rainfall during a year C) y indicates household consumption expenditure D) y indicates the number of children in a family

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'y' indicating the number of children in a family is a discrete variable as it can only take on whole number values (i.e. there cannot be 2.5 children in a family). The other options (A, B, and C) are continuous variables as they can take on any value within a range (i.e. GDP, volume of rainfall, and household consumption expenditures can all have decimal values). The number of children in a family can only take a small set of integer values. Therefore, y is a discrete variable if it measures the number of children in a family.

Consider the Following Regression Equation: Y = 0

Consider the Following Regression Equation: Y = ₀