Hi. I am presently developing a Monte Carlo study using SAS. For one of my experimental designs, I need to simulate a random variable, which has to be drawn in such a way that it should respect an a priory defined correlation to an already existing variable. More concretely, I am simulating the difference (error) between list and transaction prices of residential properties, which I assume that is strongly correlated to the size (area) of sold properties (i.e., the bigger the house, the bigger the difference between what it is asked by the seller and what he/she actually gets from the market...). Unfortunately, I was unable to find advice on how to simulate a random variable with a known defined correlation to an already existing variable. I find examples that simulate all variables but, for my study, I need to simulate a variable (error between list and market price) from an existing one (area). The simulation needs to take into account a pre-defined correlation between the existing and simulated variables (say, 0.9). Would it be possible to get some advice on how to do this? Suggest some reading? Thanks.
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