{
  "cells": [
    {
      "cell_type": "markdown",
      "metadata": {},
      "source": [
        "# Simulating Heteroskedasticity\n",
        "\n",
        "Module 8 notebook lab. This notebook uses original Ceteris Lab teaching data and does not report real empirical findings.\n"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {},
      "source": [
        "## Learning goal\n",
        "Generate and visualize changing variance.\n",
        "\n",
        "Dataset: MODULE8_INCOME_SAVINGS_SYNTHETIC. Variables: household_id, income, savings, age, education, family_size.\n"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": null,
      "metadata": {},
      "outputs": [],
      "source": [
        "import pandas as pd\n",
        "import matplotlib.pyplot as plt\n",
        "\n",
        "df = pd.read_csv(\"/data/module-8/module8_income_savings_heteroskedastic.csv\")\n",
        "print(df[[\"income\", \"savings\", \"error_scale\"]].head())\n",
        "plt.scatter(df[\"income\"], df[\"savings\"], alpha=0.75)\n",
        "plt.xlabel(\"Income\")\n",
        "plt.ylabel(\"Savings\")\n",
        "plt.title(\"Synthetic data: spread grows with income\")\n",
        "plt.show()\n"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {},
      "source": [
        "## Reflection\n",
        "Write two sentences: one sentence explaining what the diagnostic or robust result says, and one sentence explaining a limitation or next step.\n"
      ]
    }
  ],
  "metadata": {
    "kernelspec": {
      "display_name": "Python 3",
      "language": "python",
      "name": "python3"
    },
    "language_info": {
      "name": "python",
      "version": "3.11"
    },
    "ceteris_lab": {
      "module": "Module 8",
      "lesson": "What Is Heteroskedasticity?",
      "dataset": "MODULE8_INCOME_SAVINGS_SYNTHETIC",
      "copyright": "Original Ceteris Lab notebook. No external text, tables, or figures are reproduced."
    }
  },
  "nbformat": 4,
  "nbformat_minor": 5
}