User Account

All Pages

Calculate the weekly return and construct a histogram

Assignment Help Applied Statistics
Reference no: EM132291961

Problem Description:

The blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority (or a middle man). According to some, replacing the middle man with a revolutionary technology that is faster, cheaper and as secure will greatly improve market efficiency.

One application of blockchain technology in finance is the "cryptocurrencies", with the best known example being "Bitcoin".Some believe that such a secure, global, and digital currency represents the future of finance, while some are not optimistic about the future of Bitcoin and cryptocurrencies in general.

Your task is to evaluate recent prices of Bitcoin and based on this evidence whether individuals should invest in Bitcoin. There are two parts to this assignment, each of which is described in detail:

Part A

Locate the data file (Assignment_BusStats.xls) on CANVAS.

1. Using the most appropriate type of graphto present weekly closing price of the Bitcoin and provide a general description. Hint: What are the main features of this graph, is there a trend? [Topic 1]

2. Calculate the weekly return and construct a histogram. Does the data appear normally distributed? Is there evidence of outliers? Hint: the formula for a return is (Current Price -Previous price)/Previous price multiplied by 100[Topics 1-3]

3. Calculate and interpret the three aspects of Descriptive Analysis, Location, Shape and Spread, for weekly return. [Topic 1]

4. What is the empirical probability of a loss? [Topic 2]

5. Repeat the same steps (steps 1-4 above) for three share prices in the Australia Securities Exchange: National Australia Bank (NAB) from the financial sector, Wesfarmers Limited (Wesfarmers) from the consumer discretionary sector, and Woodside Energy (Woodside) from the energy sector.

6. Construct a95% confidence interval of the return to Bitcoin and interpret the interval. How does your interval change if the level of confidence is 90% and 99% respectively, and explain why. [Topics 6-7]

7. Construct a 95% confidence interval of the return to NAB, Wesfarmers, and Woodside respectively. [Topics 6-7]

8. An investment advisor claimed that thereturn to Bitcoin is 4% while thereturns to other three shares are no different from zero. Do you agree? Justify your reasoning usinga two-tailed hypothesis test approach at the significance level of 5%. [Topic 8]

Part B

Write a ministerial brief of no more than 200 words containing no more than three graphs on whether you can confidently recommend investing in the Bitcoin, compared with ONE of three shares: NAB, Wesfarmers, and Woodside. Each student within a groupmust comment on a different comparison. Hint: draw on the evidence you have gathered from PartA, as well as other information/evidence not covered here but you believe is useful.Please clearly indicate your student ID and name for your individual work(see Template). In addition please complete a Micro-credential on cross-cultural communication.

Attachment:- Assignment Instructions.rar

Verified Expert

The assignment has first part dealing with the business report on investment in bitcoin decision. This part contains the statistical analysis and involves hypothesis testing at 5% level of significance. This part is also involved in histograms and line chart analysis and contains a probability analysis of loss. The other part is about the brief as to whether to invest in bitcoin or not vis-a-vis other shares.

Reference no: EM132291961

Questions Cloud

Domain of discourse : 1) If P(x)=T, P(y)=F and Q(x)=F, Q(y)=T ; give a domain of discourse so that the two propositions are not equivalent.
Why is it important to invest in sales training : Why is it important to invest in sales training? How can new technologies be used most effectively in sales leadership communication?
What components are included in the selection process : What components are included in the selection process? Which one do you think is the most important?
Classes and employee and hour structs : Create Restaurant, Menu and Pizza classes and employee and hour structs. Create the .h and .cpp files for one of the classes
Calculate the weekly return and construct a histogram : ECON1030 - Business Statistics - RMIT University - Calculate and interpret the three aspects of Descriptive Analysis, Location, Shape and Spread
How important is medical care to life expentacy gains : How important is medical care to life expentacy gains? What does the nature of the leaders' behavior have to do with ethics in the workplace?
Explain the dark side of leadership : Explain the dark side of leadership. What are the principles of ethical leadership and explain the details?
What problems the police state create in the United States : What problems did the "police state" (for example, Prohibition, immigration restriction and censorship) create in the United States, during the 1920s
Most important external forces impinging on the segment : Identify the most important external forces impinging on the segment (and Tesla Motors specifically) within the PESTEL framework.

Reviews

len2291961

4/24/2019 12:32:58 AM

This criterion is linked to a learning outcomeProfessional Report - Component 4-Format (3 pts) 3.0 to >2.0 Pts OUTSTANDING/Very Good: Properly formatted with page numbering, informative heading and sub-headings, labelled graphs and tables (with proper titles). This criterion is linked to a learning outcomePart B Component 1 Ministerial Brief Structure and (2 pts) 2.0 to >1.5 Pts Outstanding/Very Good Structure: contains three key parts: the issue/topic, summary of the facts, conclusion/recommendation. Outstanding/very well organised.

len2291961

4/24/2019 12:32:42 AM

This criterion is linked to a learning outcomePart A- Component 3- Professional Report- Introduction (2.5 pts) 2.5 to >2.0 Pts Outstanding/Very Good OUTSTANDING: Demonstrated thorough and in-depth/ very good understanding of three key areas: context of the topic; what the topic is & why it is important; the aims/objectives of the report. VERY GOOD: Demonstrated good understanding of three key areas: context of the topic; what the topic is & why it is important; the aims/objectives of the report.

len2291961

4/24/2019 12:32:27 AM

This criterion is linked to a learning outcomePart A - Component 1: Statistical Analysis and Interpretation (22pts) This criterion is linked to a learning outcomePart A - Component 1: Statistical Analysis and Interpretation (22pts) This criterion is linked to a learning outcomePart A - Component 2: Professional report Executive summary (2.5pts) 2.5 to >2.0 Pts Outstanding/very Good Demonstrated thorough and in-depth /very good understanding of an overview of key essential information comprising a report: context to the topic, scope of the investigation, methodology, and key findings and recommendations.

len2291961

4/24/2019 12:31:59 AM

This is a group assignment with a minimum group size of two and a maximum group size of three. All group members must be enrolled in the same tutorial.There will be two parts to this assignment: Part A: Group Work (A Business Report) Part B: Individual Reflective Piece (A Ministerial Brief) The allocation of marks: Part A 30 Statistical Analysis 22 Professional Report 8 Part B 10 Total 40 Group members will receive a common mark for Part A and an individual mark for Part B.

Write a Review

Applied Statistics Questions & Answers

  Hypothesis testing

What assumptions about the number of pedestrians passing the location in an hour are necessary for your hypothesis test to be valid?

  Calculate the maximum reduction in the standard deviation

Calculate the maximum reduction in the standard deviation

  Calculate the expected value, variance, and standard deviati

Calculate the expected value, variance, and standard deviation of the total income

  Determine the impact of social media use on student learning

Research paper examines determine the impact of social media use on student learning.

  Unemployment survey

Find a statistics study on Unemployment and explain the five-step process of the study.

  Statistical studies

Locate the original poll, summarize the poling procedure (background on how information was gathered), the sample surveyed.

  Evaluate the expected value of the total number of sales

Evaluate the expected value of the total number of sales

  Statistic project

Identify sample, population, sampling frame (if applicable), and response rate (if applicable). Describe sampling technique (if applicable) or experimental design

  Simple data analysis and comparison

Write a report on simple data analysis and comparison.

  Analyze the processed data in statistical survey

Analyze the processed data in Statistical survey.

  What is the probability

Find the probability of given case.

  Frequency distribution

Accepting Manipulation or Manipulating

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd