density plot y-axis (density) larger than 1

[mar kro]

Dear all,

I am plotting three kdensity graphs in one graph. The variable "x" is for all the same (a log-transformed IRR). The conditions are different for the three graphs. I am using the code:

kdensity x if bothbritish ==1, addplot (kdensity x if (managerAggEthniciy== "white_anglo" & ceoAggEthniciy!= "white_anglo") | (ceoAggEthnici == "white_anglo" & managerAggEthniciy!= "white_anglo")|| kdensity x if (managerAggEthniciy!= "white_anglo" & ceoAggEthniciy!= "white_anglo")) legend (ring(0) pos (2) label (1 "bothbritish") label (2 "onebritish") label (3 "notbritish"))

I do get the three graphs plotted in one, however, the density on the vertical axis exceeds 1. This can not be the case as to my understanding density within a graph = 1 (roughly speaking and not expressed in a scientifically correct way). Can someone help with interpreting this?

Best
Mar

[Maarten Buis]

That is not a problem. The density is the proportion of cases per unit of log transformed deal IRR. If the density remains constant for on unit, then the density will tell you the proportion of cases that is contained in that on unit interval. The density does not remain constant, so that is why it can exceed 1.

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