In the real-world there are many situations that have more than two outcomes. For example, the outcomes
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Question:
In the real-world there are many situations that have more than two outcomes. For example, the outcomes that might happen when a package is shipped are it arrives at its destination, it gets lost, it gets damaged, and it gets stolen. In situations like this, is it acceptable to reduce the outcomes to success and failure, such as success is the package is delivered and failure is it that it is not delivered, so that it fits the binomial model? Would this be misleading? Would omitting outcomes impact decisions that are made if success does not occur?
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