In this question we demonstrate the central limit theorem by using STATA. a) Fir

Question

In this question we demonstrate the central limit theorem by using STATA.

a) First, create 100 random draws from an exponential pdf with lambda = 1. Construct a histogram of these 100 observations.

b) Now consider 100 random samples of size 30 drawn from an exponential pdf with lambda = 1. Construct a histogram for the sample mean using the 100 observations.

c) Compare and discuss parts a and b.

What I've currently had now:

a)

clear all

set obs 100

gen sample1 = rexponential(1)

sum sample1

hist sample1

==

* (2)

clear all

set obs 100

foreach i of numlist 1/30{

gen obs`i'=rexponential(1)

}

egen samplemean = rmean(obs*)

hist samplemean, frequency normal

the first histogram i got:

the second histogram i got:

Explanation / Answer

The first histogram indicates, distribution is right skewed with possible outliers and second histogram indicates the distribution is bimodal with skewed towards right.

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