create observations in a random sample

[Francisco Minchala]

Consider the following procedure yi=-5+xi+ui, where xi are generated from a random sample of the uniform distribution on the interval [0,10]; ui is obtained from the standard normal distribution. With this information, construct the observations for yi.

[Fei Wang]

You may revise the sample size below.

clear
insobs 1000
gen y = 5 + runiform(0,10) + rnormal()

Or

clear
insobs 1000
gen x = runiform(0,10)
gen u = rnormal()
gen y = 5 + x + u

The second is better as you may need to do more simulations based on the same x.

[Francisco Minchala]

thanks