**HW7
clear

set seed 64797
set obs 1000

** x = MBA 1 = yes, 0 = no
** w = starting salary, if MBA yes = u~normal(100000,10000) and if no u~normal (70000,10000)
** z = years of experience u~normal (10,2.5)
** y = current salary = starting salary + (year of experience * 5000 * u) u~normal (0,1)
** and if MBA no = starting salary + (year of experience * 3000 * u) u~normal (0,1)

gen MBA=runiformint(0,1)
gen startingsalary=rnormal(100000,10000) if MBA==1
replace startingsalary=rnormal(70000,10000) if MBA==0
gen years=rnormal(10,2.5)
gen currentsalary=startingsalary+(years*5000*rnormal(0,1)) if MBA==1
replace currentsalary=startingsalary+(years*3000*rnormal(0,1)) if MBA==0

sample 100, count
regress currentsalary startingsalary

bootstrap, reps(1000) size(100): regress currentsalary startingsalary

replace startingsalary=rnormal(70000,10000)
replace currentsalary=startingsalary+(years*5000*rnormal(0,1)) if MBA==1
replace currentsalary=startingsalary+(years*3000*rnormal(0,1)) if MBA==0

bootstrap, reps(1000) size(100): regress currentsalary startingsalary

power twomeans 0.02 0.12, sd(1) n(100)
power twomeans 0.02 0.12, sd(2) n(100)
power twomeans 0.3 0.3, sd(1) n(500)