How can i generate a variable that is correlated with one variable and uncorrelated with another variable?
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I have the following random numbers:
e~N(0,1) and x~N(0,v), where v is variance of x. Here e and x are correlated. I want to generate another variable say y that satisfy the following conditions:
Correlation between y and e [E(y,e)] equal to zero and the correlation between y and x [E(y,x)] is not equal to zero.
Please help me out with this.
Thanks,
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