I was trying to create a hypothesis test based on this model:
- yi = β0 + β1xi1 + ui
- xi1 ∼U(0,1) ui ∼N(0,1) β0 =1 β1 =2
Code:
set obs 1000 generate U = rnormal() generate x = uniform() gen b0 = 1 gen b1 = 2 gen y= b0+(b1*x)+U
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set obs 1000 generate U = rnormal() generate x = uniform() gen b0 = 1 gen b1 = 2 gen y= b0+(b1*x)+U
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