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In your jupyter notebook import the following library according to this code import numpy as np import pandas as pd from matplotlib import pyplot import

In your jupyter notebook import the following library according to this code
import numpy as np
import pandas as pd
from matplotlib import pyplot
import statsmodels.api as sm
import statsmodels.formula.api as smf
Place the csv file''Health_sector_returns_20170531-20220627.csv'' in your working directory and read it into a dataframe named returns. Use this file to answer questions in this activity
27 The number of rows and columns in returns is
# rows # columns
1 1000 10
2 10 1000
3 1300 13
4 13 1300
5 None of the above
Define a dataframe X = returns[['SPY_ret']] and a panda series Y=returns['MRK_ret'] . Add a constant column if 1 to X, and fit an OLS regression model and output its summary. (Hint: review how we did it in the previous video and the part of the notebook implemented for LLY_ret
28 According to your regression output, the R_squared of the regression is
1 0.2234
2 0.3245
3 0.0845
4 0.2745
5 None of the above
29 The corelation between MRK_ret and SPY_ret is
1 0.432
2 0.5239
3 -0.5235
4 0.6734
5 None of the above

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