Question

What is the Stata code for winorize 5% and 95 %? winorize salary

What is the Stata code for winorize 5% and 95 %?

winorize salary

Homework Answers

Answer #1

Stata Code:

Winsorizing variable at 5 % and 95 %

winsor2 name_of_variable, cuts(5 95)

You can use salary variable name in place of name_of_variable

[ winsor2 salary, replace cuts(5 95) ]

Explanation:

winsor and winsor2 gives almost same results with large samples.

name_of_variable: variable specifies ( i.e. salary)

replace : replaces the variables with their winsorized or trimmed counterpart.

cuts : if we do not specify any numbers by default median is taken i.e. 50 or 0.5 .

Here in our example we have taken 95% and 5 %

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