Web Reference: We can generate random numbers in Stata. We can control the data-generating process (DGP) and create data with particular properties. The generated variables can be used in the simulation. Because Stata is an interactive system, we force a distinction between replacing existing values and generating new ones so that you do not accidentally replace valuable data while thinking that you are creating a new piece of information. Variability refers to the spread of the data from the center value (i.e. variance, standard deviation). Statistics is basically the study of what causes such variability.
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