Question

Which of the following describe discrete random variables, and which describe continuous random variables?

a. The number of damaged inventory items

b. The average monthly sales revenue generated by a salesperson over the past year

c. Square feet of warehouse space a company rents

d. The length of time a firm must wait before its copying machine is fixed

Short answer

a. This is a discrete random variable.

b. This is a discrete random variable.

c. This is a continuous random variable.

d. This is a continuous random variable.

Step-by-step solution

Given information

The variables are random variables.

Identifying the random variable in case the number of damaged inventory items

a.

.Since the number of damaged inventory items can be counted, these are discrete random variables.

Identifying the random variable in case the average monthly sales revenue generated by a salesperson over the past year

b.

Average monthly sales can be counted. So, the average monthly sales revenue generated by a salesperson over the past year is a discrete random variable.

Identifying the random variable in case the square feet of warehouse space a company rents

c.

The square feet of warehouse are measurable but within an interval. So, the square feet of warehouse space a company rents is a continuous random variable.

Identifying the random variable in case the length of time a firm must wait before its copying machine is fixed

d.

The length of time can be measurable but within an interval. Hence, the length of time a firm must wait before its copying machine is fixed is a continuous random variable.