3 human indeterminacy human behavior is such that

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(3) Human Indeterminacy Human behavior is such that actions taken under identical circumstances will differ in a random way. The disturbance term can be thought of as representing this inherent randomness in human behavior. In other words, People are not predictable in their behavior. There is an element of unpredictability in all human behavior. We might interpret our model as combining a systematic or deterministic component ( 0 1 t X β β + ) with a random or stochastic component ( t u ) that represents the unpredictable element in the relationship. Instructor: Dr. Ozan ERUYGUR e-mail: [email protected] Lecture Notes 7
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