Despite your comments, I guess you want 0-1 for the second option, not 0-2.
I guess you want all numbers in the range to be equally likely, so randn is not the right choice.
I wouldn't use a for loop here, but you can if you want:
for i=1:length(hosp_yn_coded)
if (hosp_yn_coded(i)==1)
los_total(i)=2*rand; % rand gives 0-1, so 2*rand is 0-2
else
los_total(i)=rand;
end
end
