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st: RE: Calculating binomial probability distribution of cumulative outcomes of independent events with differing values and probabilites


From   "Nick Cox" <[email protected]>
To   <[email protected]>
Subject   st: RE: Calculating binomial probability distribution of cumulative outcomes of independent events with differing values and probabilites
Date   Sun, 11 Jan 2009 16:51:06 -0000

I don't get this. Probabilities of .9, .5, .2 don't add to 1. 
Nor does this look like a binomial calculation to me. Nor do obvious
need Stata for problems like this, which have an analytic solution. 

Your problem may be related to that solved below

. set random 1952 
. gen noise = runiform() 
. gen score = cond(noise < .2, 12, cond(noise < .6, 2, 6)) 

Nick 
[email protected] 

Wally Knox

I would like to calculate the probability distribution of the  
cumulative outcomes of independent events each of which has
a different value and a different probability.  For instance, take  
three events.  Event One has a probability of .9 and would contribute  
12 to the overall outcome.  Event Two has a probability of .5 and  
would contribute 2 to the overall outcome.  Event Three has a  
probability of .2 and would contribute 6 to the overall outcome.  What  
is a simple way in Stata to perform the calculation of the  
distribution of the overall outcome values?


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