Otherwise-statement in XSLT-choose is not applied/working - xslt

Question

I have an XML-document with a type-node whose value is either "1" or "2":
<MyDoc>
<foo>
<bar>
<type>2</type>
</bar>
</foo>
</MyDoc>
I want to set a variable typeBool depending on the value of the type-node, if it is "1" it should be set to false, if it's "2" to true.
With the XSLT-choose-Element it should be possible to test for the current value and set typeBool according to the outcome.
I'm trying to do this with the following construct in XSLT 2.0, but I'm puzzled that the "otherwise"-path is not applied and I get an error that typeBool is not created:
<xsl:transform xmlns:xsl="http://www.w3.org/1999/XSL/Transform" version="2.0">
<xsl:variable name="type" select="/MyDoc/foo/bar/type/text()"/>
<xsl:choose>
<xsl:when test="$type = '2'">
<xsl:variable name="typeBool">true</xsl:variable>
</xsl:when>
<xsl:otherwise>
<xsl:variable name="typeBool">false</xsl:variable>
</xsl:otherwise>
</xsl:choose>
<h1><b><xsl:value-of select="$typeBool"/></b></h1>
</xsl:transform>
This is the transformation error I get:
error during xslt transformation:
Source location: line 0, col 0 Description:
No variable with name typeBool exists

Answer 1

As you currently present your problem, an xsl:choose is not needed and it unnecessarily complicates your XSLT code. Your actual problem might be more intricate though.
You can write a template that matches the element you are interested in (for instance, type elements) and then simply select the value of a comparison that will evaluate to either true or false.
XSLT Stylesheet
<?xml version="1.0" encoding="UTF-8" ?>
<xsl:transform xmlns:xsl="http://www.w3.org/1999/XSL/Transform" version="2.0">
<xsl:output method="html" omit-xml-declaration="yes" encoding="UTF-8" indent="yes" />
<xsl:strip-space elements="*"/>
<xsl:template match="type">
<h1>
<b>
<xsl:value-of select=". = '2'"/>
</b>
</h1>
</xsl:template>
<xsl:template match="text()"/>
</xsl:transform>
HTML Output
<h1><b>true</b></h1>
Try it online here.

Answer 2

With choose-element
The choose-clause has to be defined inside of the variable-declaration:
<xsl:variable name="type">
<xsl:value-of select="/MyDoc/foo/bar/type/text()"/>
</xsl:variable>
<xsl:variable name="typeBool">
<xsl:choose>
<xsl:when test="$type = '2'">true</xsl:when>
<xsl:otherwise>false</xsl:otherwise>
</xsl:choose>
</xsl:variable>
The conditional also looks cleaner this way.
With XSLT 2.0
#MichaelKay pointed out that in XSLT 2.0 a xpath-conditional can be used, which is even simpler:
<xsl:variable name="type">
<xsl:value-of select="/MyDoc/foo/bar/type/text()"/>
</xsl:variable>
<h1>
<b>
<xsl:value-of select="select="if($type=2) then 'true' else 'false'"/>
</b>
</h1>