For the following three questions, consider the following STATA program: /* beginning of the program */ clear cap postclose tempid postfile tempid beta test_outcome /// using mydata.dta,replace forvalues i = 1(1)10000 { drop_all quietly set obs 10000 gen x = rnormal() gen e = rnormal() gen y = x^3 + e quietly reg y x, r scalar beta = _b[x] qui test x = 3 sca test_outcome = (r(p)>0.1) post tempid (beta) (test_outcome) } postclose tempid use mydata.dta, clear sum /* end of the program */ The "sum" command will give us the mean and standard derivation of beta and test_outcome. It is known that E (X4) = 3 for a standard normal X.

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What would you expect the mean of beta to be close to?
Transcribed Image Text:What would you expect the mean of beta to be close to?
For the following three questions, consider the following STATA
program:
/* beginning of the program */
clear
cap postclose tempid
postfile tempid beta test_outcome ///
using mydata.dta,replace
forvalues i = 1(1)10000 {
drop_all
quietly set obs 10000
gen x = rnormal()
gen e = rnormal()
gen y = x^3 + e
quietly reg y x, r
scalar beta = _b[x]
qui test x = 3
sca test_outcome = ( r(p)>0.1 )
post tempid (beta) (test_outcome)
}
postclose tempid
use mydata.dta, clear
sum
/* end of the program */
The "sum" command will give us the mean and standard derivation
of beta and test_outcome. It is known that E (X¹) = 3 for a
standard normal X.
Transcribed Image Text:For the following three questions, consider the following STATA program: /* beginning of the program */ clear cap postclose tempid postfile tempid beta test_outcome /// using mydata.dta,replace forvalues i = 1(1)10000 { drop_all quietly set obs 10000 gen x = rnormal() gen e = rnormal() gen y = x^3 + e quietly reg y x, r scalar beta = _b[x] qui test x = 3 sca test_outcome = ( r(p)>0.1 ) post tempid (beta) (test_outcome) } postclose tempid use mydata.dta, clear sum /* end of the program */ The "sum" command will give us the mean and standard derivation of beta and test_outcome. It is known that E (X¹) = 3 for a standard normal X.
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