 What are the variables? Variables are just characteristics that describes the population or the sample. And there can be two types of those variables. They can be a categorical variable, which means it's variables that you can put into categories. And we also call them qualitative variables because of how we describe them. Then we can also have variables that can be counted or can be measured. And those are numerical variables. And those, sorry, those are your quantitative variables are variables that you can measure and you can apply the analysis of some summations and modes and so forth. So let's look at categorical variables. What are those categorical variables? For example, only I have Merit status, political party eye color. So if I work in an insurance company and I have to issue insurance to people, sometimes you need to gather information to analyze the risk of the people. So you need to know whether are they married? Do they have kids? So you need to gather those type of data. And sometimes during the gathering of that data, some of the data will be categorical. Like I just mentioned, Merit status is your categorical data. The type of policy people take, whether they are taking retirement annuity, whether they are taking unit trust, whether they are taking funeral plans, those are categorical variables. And if they are taking policy, sometimes you go and you want to find out more about them, whether do they have certain illnesses and so forth. So we can look at the color of their eyes and look at their demographics, the age, but then it's not a categorical. We talk about categorical, we talk about things that we can put into categories. Right? Numerical variables. The numerical variables are those that we can count or we can measure. And if we can count them, then they are called discrete variable. Variables that can be counted are called discrete, numerical or discrete quantitative variables. For example, the number of policies that people have with this insurance company. Let's take, for example, insurance A. Insurance company A sells products, funeral policies and retirement annuities and so forth. If I look at a customer, I can count how many number of policies they have taken. For example, sometimes we can count how many days or how many months or how many years they have collapsed their policies, because we are able to count them. We can count how many number of people are in short on that policy. We can count how many number of underwriters we have so forth. And those are your discrete variables, because we are able to count them. Continuous variables, which are those variables that are measured. With continuous variables, we can measure the premium, because we can know how much premiums we have collected, how much premium is still outstanding, how much premium we still need to collect. We can also collect data about their age. Age is continuous. How old are your insurance policy holders? How old are the people you have insured? And so forth. But there is a catch with some of the continuous variables. Sometimes continuous variables can be discrete variables. For example, we want to count the number in years. If we count them in years, therefore then they are no longer continuous, but they become discrete.