Question $3($Computer applications$)20$ points

This question requires the use of Python. Download the US$\_$output$\_$wage$\_$data.csv dataset

from the course web$-$site and load it into a Pandas data frame.

The data set provides index data on output per hour $(Y)$ and real wages per hour $(x)$ for the

non$-$farm business sector of the U$.$S$.$ economy for $1959-1997.$ The base year of the indexes is

$1992=100.$

$($a$)(5$ points$)$ Create a scatter plot of $Y,$ output per hour in the business sector, against $x,$

compensation per hour in the business sector.

$($b$)(5$ points$)$ Based on economic theory, what relationship between Y $1$ and X $1$ would you

expect to see? Does the scatter plot support the theory?

$($c$)(10$ points$)$ Estimate the OLS regression of Y$1$ on X$1,$ and interpret the regression

coefficients.