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st: difference between estimated ratios of x/y and ax/ay
From |
"Zurab Sajaia" <[email protected]> |
To |
"statalist" <[email protected]> |
Subject |
st: difference between estimated ratios of x/y and ax/ay |
Date |
Wed, 17 Oct 2007 12:17:55 -0400 |
Dear All,
I was estimating ratio of two variables (in fact, svy : ratio, but problem
is the same for both) and after noticing that both numerator and denominator
contained same component I decided to check whether canceling it would
affect the results. To my surprise it did. Lets consider this example:
sysuse auto, clear
. ratio weight / length
...
_ratio_1 | 16.06673 .2807194 15.50726 16.6262
...
.generate double wa = weight * trunk
.generate double la = length * trunk
.ratio wa / la
...
_ratio_1 | 16.48413 .2797573 15.92658 17.04169
...
Have anybody experienced similar case? does this thing come purely from
numerical, rounding issues or there is something bigger (I can't think of
any though)?
Any insight would be appreciated.
Thanks
Zurab
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