UC Berkeley StarCraft Class, Week 7

UC Berkeley's StarCraft team defeated MIT's team by a score of 3-2 this week. I think I was supposed to feel happy about that because there I was attending the Berkeley class. But then I was supposed to feel sad because I went to MIT. In truth, I never bought into the us-vs-them concept of school rivalries in the first place but congratulations to the winners.
This week's class was about scouting. Somehow, this involves a bunch of equations and graphs that I don't have time to reproduce for you (nor do I even know how on the web, really) so you will suffer, just like last week. Or maybe you're actually happy about that because it means I'll explain the equations in regular English, so the non-math people will be able to understand more easily?
Choices
Before we get to scouting, let's lay some groundwork. Consider the difference between choices that are discrete and choices that are continuous. If you want to get really technical, just about every choice in StarCraft is discrete because it eventually comes down to the pixel and the clock cycle, but let's not be quite that picky. The categories wouldn't be so useful if we put everything into one of them.
In a discrete choice, we get only the extremes and nothing inbetween. For example, you choose between building a robotics facility or a templar archives. These are different tech trees so this one decision has a lot of implications and you can only have one or the other (early on when you can't afford both). You can't decide to go halfway on that and build half a robotics facility and half of a templar archives.
Continuous choices have much more leeway though. When to make an expansion?