##########  PS-239 - FALL 2006 #############################################
##########  PROBLEM SET 7      #############################################
library(MASS)
# Exercises 1 and 2
# Generate normal random variables x1 and x2
set.seed(101)
x1<-rnorm(1000,mean=2,sd=1)
x2<-rnorm(1000,mean=3,sd=1)
exercise1<-data.frame(x1,x2)
# Exercises 3 and 4
# Generate data
# Draw covariates
set.seed(101)
n<-1000
X1<-rnorm(n,mean=10,sd=3)
X2<-rnorm(n,mean=5,sd=2)
X3<-runif(n,min=10,max=20)
# Draw disturbance
u<-rnorm(n,mean=0,sd=1)
# Generate Y
Y<-10+2*X1+4*X2+3*X3+u
exercise3<-data.frame(Y,X1,X2,X3)
save(list = ls(all=TRUE),file="W:/Teaching/Fall2006_PolSci239/ProblemSets/ProblemSet7/PSet7.RData")