The topic for today is drawing random samples with replacement. If you haven’t read part 1 and part 2 of this series on random numbers, do so. In the series we’ve discussed that Read more…
Last time I told you that Stata’s runiform() function generates rectangularly (uniformly) distributed random numbers over [0, 1), from 0 to nearly 1, and to be precise, over [0, 0.999999999767169356]. And I gave you two formulas,
generate double u = (b–a)*runiform() + a
The random numbers will not actually be between a and b: they will be between a and nearly b, but the top will be so close to b, namely 0.999999999767169356*b, that it will not matter.