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What is the empirical probability of a loss

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Reference no: EM132297281

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?

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

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

4. What is the empirical probability of a loss?

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 a 95% 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.

7. Construct a 95% confidence interval of the return to NAB, Wesfarmers, and Woodside respectively.

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%.

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:- BUSINESS STATISTICS.rar

Verified Expert

The assignment contains two parts in which one part is base don a business report and the other on ministerial briefing.The first part is having statistical analysis where the concepts of descriptive statistics and hypothesis testing is done. The histograms have been made to analyse the concept of normal distribution. The statistical analyses have been done using Microsoft excel and the use of data analysis tool pack has been used. The other part deals with the comparison of bitcoin investment with the other investment in the national Australian bank.

Reference no: EM132297281

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Reviews

len2297281

5/1/2019 4:09:28 AM

This is a relatively simple assignemnt for anyone who know statistics, i simply dont have the time right now to complete it. I require a high mark for this assignment. The response to Part A must be provided in the form of a business report with no more than 10 pages (including cover page). The structure of your business report must include 1] A Title, 2] An Executive Summary, 3] An Introduction, and 4] Conclusions.

len2297281

5/1/2019 4:08:50 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. The response to Part Amust be provided in the form of a business report with no more than 10 pages (including cover page). The structure of your business report must include 1] A Title, 2] An Executive Summary, 3] An Introduction, and 4] Conclusions.

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