Activity II - Use the data in the attached for this question.

You are working as an analyst for a large cable company that offers bundles of channels all across the United States. One of the bundles is the basic package, which includes network channels along with a few other basic cable channels. You are interested in learning how the price of this basic package influences the rate of subscriptions in a market. You have data on subscriptions per 1,000 local residents, price for the basic package, and average local household income. You also have data on local telecom labor costs per subscriber. You believe this last variable influences the local price but not subscriptions per se.

Based on the data provided, write out an expression for the data-generating process for subscriptions per 1,000 local residents.

Estimate the effect of basic package price on subscriptions per 1,000 local residents using OLS. Why might you distrust this result as being a causal effect?

Subs per 1000	Price	Income	Labor
440.708856	41.97364267	67.867	12
475.0794336	41.42173893	64.549	6
426.0134086	36.22490144	53.664	6
437.3416207	45.65210345	60.429	12
424.3132453	40.60737421	52.669	8
405.8547974	29.82663289	60.895	6
392.3133087	40.36838478	61.103	15
477.0864377	50.37490628	65.837	12
487.1057145	49.38095242	56.82	8
488.8287287	50.30028811	68.027	9
489.1651806	46.83036343	55.183	8
517.795371	48.89806183	62.407	6
508.5574657	57.29174428	66.807	13
455.5854772	48.62991287	62.806	12
442.4767971	49.97813285	53.608	13
452.0480126	44.11633544	59.35	11
505.8553432	48.00172386	64.845	7
424.0854643	43.58741072	53.561	12
450.9913707	49.84456178	57.924	13
440.1421517	49.66985861	64.123	14
458.4030341	38.56600568	60.007	6
524.0989899	50.31699832	67.197	7
449.6943836	44.27739727	52.03	9
473.3537491	44.87195818	63.122	7
440.6714648	38.62957746	63.894	6
460.3150734	47.3636789	56.133	12
463.3133672	40.45739453	68.569	7
483.3185748	53.26842913	64.708	13
485.1825862	45.0945977	63.615	6
455.6776429	53.67777382	61.611	15
444.993757	37.22762617	54.628	6
458.1288704	45.72864507	60.757	11
455.5963425	49.25505708	68.066	14
542.7305048	54.37108414	60.504	5
464.5800542	44.3266757	55.62	6
451.3592229	48.71020381	62.098	15
501.7435013	45.48425022	66.838	6
496.0710399	52.38383998	58.768	10
528.0587313	52.38945522	62.722	6
503.9196202	54.50327004	56.9	9
447.3272049	42.92753415	55.762	10
472.0317233	50.30328722	57.212	12
467.9481011	51.18801685	51.82	12
512.8771418	56.2321903	65.484	11
462.8304808	43.17508014	52.78	5
457.3451212	51.56818687	50.936	15
452.2986257	49.56160428	64.929	15
403.7495937	42.10576561	61.115	14
457.4643151	38.84921918	67.369	5
439.6837281	42.25695468	49.142	7
427.1804167	38.33690279	53.159	9
436.1152505	45.97287509	63.278	14
463.4571324	52.73018873	54.076	14
469.2879976	52.2009996	54.082	12
469.6511059	44.23335099	70.251	7
463.387035	39.59050584	66.844	7
540.5173261	55.17422102	54.472	7
494.7101662	55.8745277	59.463	13
519.1608019	63.39346698	61.8	15
449.3304619	45.92524365	60.779	10
426.4762936	43.62154894	60.747	14
470.9543456	44.09272427	54.398	7
486.1558392	53.03447319	52.949	11
428.2706986	48.84728311	56.187	15
475.3330935	56.72501559	62.983	15
450.2224818	46.57191363	59.791	13
462.3126544	40.2769424	57.651	6
485.341395	56.41939917	62.825	15
384.7280268	42.4148378	54.239	15
460.0327308	50.92345513	67.492	13
424.4351347	40.58668911	51.915	11
441.0487153	39.56661922	49.649	7
459.7077877	43.77363129	50.066	7
503.7665327	53.27542212	65.114	10
537.3140167	52.91250278	67.839	5
428.3412426	44.55487376	67.012	15
444.8506978	37.77728297	57.187	6
466.6000753	46.92117922	52.073	9
424.2793584	41.50905974	57.225	10
455.6276356	55.54143927	51.379	15
493.237391	51.26056517	64.674	12
476.5030929	41.13268214	67.707	6