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When is a discrete counting model appropriate compared to a continuous measurement model?

A discrete counting model is appropriate when the variable represents a count of items within a finite or countable set, such as the number of people in a family. A continuous measurement model is appropriate for idealized quantities that can take any value in an interval, such as time or unrounded monetary amounts.

Conditions

  • The variable is a count of distinct entities.
  • The variable is a measurement of a continuous quantity.

Reasoning, step by step

  1. Determine if the variable is obtained by counting (discrete) or measuring (continuous).
  2. If counting, check if the possible values form a finite or countable set.
  3. If measuring, consider if the values are idealized as real numbers in an interval.
  4. Select the model that matches the nature of the data generation process.

Example

A count within a four-person family has possible values 0,1,2,3,4. Such a finite set of values defines a discrete counting model. Conversely, an idealized continuous amount uses a different model before rounding.

Common misconceptions

  • Using a continuous model for small integer counts.
  • Ignoring the difference between rounded measurements and idealized continuous variables.

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