Monte Carlo for Censored varriable

[saali5984]

Hello
How I can write a Monte Carlo experiment for the following problem?????

Ysi=a+b*Xi+e

Create N = 200 random values of xi that are spread evenly (or uniformly) over the interval [0, 20]. These we will keep fixed in further simulations.
Obtain N = 200 random values ei from a normal distribution with mean 0 and variance 16.
Create N = 200 values of the latent variable. (Ysi)
Obtain N = 200 values of the observed yi using
Yi=0 if Ysi<=0
Yi=Ysi if Ysi>0
then estimate
Ysi=a+b*Xi+e
Yi=c+d*Xi+e
and save the vector of estimated coefficiants of equations written in above. In AandB vectores.

[startz]

When you post a homework question, it's best to show what you've done so far so people can figure out how to give you a helpful hint.

[EViews Gareth]

Pretty simple for loop:

Code: Select all

!its = 100 !t = 200 create u !t matrix(2,!its) res1 matrix(2,!its) res2 series ei series yi series ysi equation e1 equation e2 series xi = rnd*20 for !i=1 to !its ei = 4*nrnd ysi=xi+ei yi = @recode(ysi<0,0,ysi) e1.ls ysi c xi e2.ls yi c xi colplace(res1,e1.@coefs,!i) colplace(res2,e2.@coefs,!i) next