[Limdep Nlogit List] correlated random parameters
Ellen Van Loo
Ellen.VanLoo at UGent.be
Sat Mar 19 10:09:41 AEDT 2016
Dear NLOGIT users,
I have a question about how to derived the standard deviations based on the Cholesky matrix L in case of correlated random parameters.
I am reading the section 15.3.6 (page 636) in the book Hensher et al. (2015), applied choice analysis, 2nd edition.
On page 639, close to the bottom of the page,
"The second (i.e., sdCRINVT) is (0.00253^2+0.05049^2)^(1/2)=0.00128. Readers can use this logic to calculate sdCOST."
Question 1: Calculation sdCRINVT
I believe 0.00253^2+0.05049^2)^(1/2)=0.05055 and not 0.00128.
But none of these 2 are the sdCRINVT reported in the Table on top of page 639 (here sdCRINVT=0.07906).
Question 2: Calculation sdCOST
How would you calculate sdCOST? According to the table it is 0.28348.
I would do (0.17326^2+0.00158^2+0.01348^2)^(1/2)=0.2195
Thanks for your advice,
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