How to correct the below code?

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n=5; p=4;
u=randn(n, p);
X= sqrt(1-r*r)*u + r*u;
e=normrnd(0*eye(n),5*(n))
beta0=[4;3;2.3;1];
y=X*beta0*(eye(n))'+e;

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John BG
John BG 2016-8-14
Satish
change your last line from
y=X*beta0*(eye(n))'+e;
to
diag(X*beta0)+e
I assumed
r=1
the command diag does what you tried with eye(n).
Satish
would you please be so kind to mark my answer as Accepted Answer?
To any other reader, please if you find this answer of any help solving your question,
please click on the thumbs-up vote link,
thanks in advance
John BG

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