How to resolve the following apache spark error?

Question

When I start my Ipython notebook with pyspark profile(it's configured for pyspark) I get:

Exception in thread "main" java.lang.NoClassDefFoundError: org/apache/hadoop/fs/FSDataInputStream
    at org.apache.spark.deploy.SparkSubmitArguments$$anonfun$mergeDefaultSparkProperties$1.apply(SparkSubmitArguments.scala:117)
    at org.apache.spark.deploy.SparkSubmitArguments$$anonfun$mergeDefaultSparkProperties$1.apply(SparkSubmitArguments.scala:117)
    at scala.Option.getOrElse(Option.scala:120)
    at org.apache.spark.deploy.SparkSubmitArguments.mergeDefaultSparkProperties(SparkSubmitArguments.scala:117)
    at org.apache.spark.deploy.SparkSubmitArguments.<init>(SparkSubmitArguments.scala:103)
    at org.apache.spark.deploy.SparkSubmit$.main(SparkSubmit.scala:113)
    at org.apache.spark.deploy.SparkSubmit.main(SparkSubmit.scala)
Caused by: java.lang.ClassNotFoundException: org.apache.hadoop.fs.FSDataInputStream
    at java.net.URLClassLoader$1.run(URLClassLoader.java:366)
    at java.net.URLClassLoader$1.run(URLClassLoader.java:355)
    at java.security.AccessController.doPrivileged(Native Method)
    at java.net.URLClassLoader.findClass(URLClassLoader.java:354)
    at java.lang.ClassLoader.loadClass(ClassLoader.java:425)
    at sun.misc.Launcher$AppClassLoader.loadClass(Launcher.java:308)
    at java.lang.ClassLoader.loadClass(ClassLoader.java:358)
    ... 7 more