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2008 Apr 26
0
Help with simulation of heteroskedasticity
...indepedent random variable e<- rnorm(100,0,x^2) # generating the error term y.fitted<- 0.5*(x) +3 y<- y.fitted+e And then I wrote an for loop code which could give me the results of a t-test. It seems that the simulation worked good because the main result is that the t-test was no longer meanfull (as it is expected) But my main doubt is if this code was capable to generate the type of heteroskedasticity that I wanted. I tried to understand how the rnorm function generates the numbers but i could not grab much.... So could anyone help me telling if this kind of work is okay? or is there an...