The type or name space name MyDatabaseEntities could not be found... C#

I have the following code to populate a chart:

      private void populateReport()
        {
           using (MyDatabaseEntities dc= new MyDatabaseEntities())
            {
                var v = dc.SqlDataSource1.Tolist();

                GridView1.DataSource = v;
                GridView1.DataBind();

                Chart1.DataSource = v;
                Chart1.DataBind();
        }
    }

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(used example at: https://www.youtube.com/watch?v=KOV3Z0PaMVs)

Using vs2010, instead of creating data entity (as described in this video), I just dragged and dropped the table on my page thus automatically creating  SqlDataSource1 on my web form. The reason I was forced to do this drag and drop was my menu options in vs 2010 didn't match thoese displayed on the demo video.

As shown on the attached image, I get some errors at line 3 saying "The type or name space name MyDatabaseEntities could not be found (are you missing a using directive or an assembly reference?)"

Clearly, I am have using directive but as to how to make assembly reference, I am not sure how it is done.

The demo is seemingly in a later version of visual basic.

Question: How can I correct this error?

Thank you.
TypOrNameSpace.png