Hello all,

I am a new STATA user and have some questions about winsorizing.

For example, I want to winsorize variable a with 20 observations at 5% and 95% percentile: -40 -5 10 13 15 19 26 28 41 58 78 85 86 89 89 91 92 101 101 1053 (-40 and 1053 are outliers given 5% and 95% percentile)

Code winsor a, gen(a_w) p(0.05) gives me: -5 -5 10 13 15 19 26 28 41 58 78 85 86 89 89 91 92 101 101 101

and code winsor2 a, suffix(_w2) cuts(5 95) gives me: -22.5 -5 10 13 15 19 26 28 41 58 78 85 86 89 89 91 92 101 101 577

Base on my understanding, both codes should perform the same task. So why the results are different? Which one is correct?

Another more general question, if one wants to winsorize a string of data such as 1 2 3 4 ...98 99 100 at 1% and 99% percentile, what is the correct result? Should it be 2 2 3 4....98 99 99?

Han