Ceteris LabInteractive Econometrics

Lesson 18

Creating simple graphs in Python

Big question

How can graphs make data patterns easier to see?

Lesson progress

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Big question
Concept
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Quiz

Learning objectives

  • Explain creating simple graphs in python in plain language.
  • Use scatter plot correctly in an interpretation.
  • Connect the lesson idea to a formula, graph, Python result, or real example.

Simple explanation

Graphs show patterns that tables can hide. Scatter plots are especially useful in econometrics because they show how two variables move together.

Key terms

Scatter plot
A graph where each point represents two values for one observation.
x-axis
The horizontal axis, often used for an explanatory variable.
y-axis
The vertical axis, often used for an outcome variable.
Trend
A broad pattern in the plotted points.

Example

A scatter plot of education and wage can show whether higher education tends to come with higher wages.

Scatter plot

1import pandas as pd2import matplotlib.pyplot as plt3 4df = pd.read_csv("wage_sample.csv")5plt.scatter(df["education"], df["wage"])6plt.xlabel("Education")7plt.ylabel("Wage")8plt.title("Wage and education")9plt.show()

Live notebook

Run this lesson as a notebook

Open an editable notebook cell-by-cell, run Python in the browser, and download the `.ipynb` file for later.

Checkpoint activity

Pause and explain this lesson's main idea in your own words before moving forward.

Try it yourself

Write one plain-English sentence explaining the main idea from this lesson.

Common mistakes

Check these before you move on.

A regression coefficient describes a pattern unless the assumptions or research design support a causal interpretation.

Quick quiz

Which graph is useful for seeing the relationship between two variables?

Key takeaway

Graphs help you see the data before you summarize it with one number.