a Generate500data sets each with 30 pairs of observations xi

a Generate500data sets, each with 30 pairs of observations (xi,yi). Use a bivariate normal distribution with means 0, standard deviations 1, and correlation 0.5 to generate each pair (xi,yi). For each data set, calculate ¯y and ˆ¯yreg, using ¯xU = 0. Graph a histogram of the 500 values of ¯y and another histogram of the 500 values of ˆ¯yreg. What do you see?

Solution

a Generate500data sets, each with 30 pairs of observations (xi,yi). Use a bivariate normal distribution with means 0, standard deviations 1, and correlation 0.5

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