Calculate the weekly return and construct a histogram

Assignment Help Applied Statistics

Reference no: EM132126068

BUSINESS STATISTICS PROJECT -

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 Bus Stats.xls) on CANVAS.

1. Using the most appropriate type of graph to 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 the three Singapore share prices Singtel, Wilmar International and Olam International.

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 95% respectively, and explain why. [Topics 6-7]

7. Construct a 95% confidence interval of the return to Singtel, Wilmar International and Olam International respectively. [Topics 6-7]

8. An investment advisor claimed that the return to Bitcoin is 4% while the returns to other three shares are no different from zero. Do you agree? Justify your reasoning using a 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: Singtel, Wilmar International and Olam International.

Hint: draw on the evidence you have gathered from Part A, as well as other information/evidence not covered here but you believe is useful.

Attachment:- Assignemnt Files.rar

Reference no: EM132126068

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len2126068

9/29/2018 12:04:43 AM

There will be two parts to 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. The response to Part B must be provided in the form of a ministerial brief with no more 200 words containing no more than three graphs. Please clearly indicate your student ID and name for your individual work.

9/29/2018 12:04:37 AM

You must submit an electronic copy (group response to Part A & compilation of individual responses to Part B) of your assignment in Canvas. See an attached Template of your submission for more details. Only one submission is required per group. Hard copies will not be accepted. SHOW YOUR WORK for calculation based questions.This assignment requires the use of Microsoft Excel. If you have Windows, you will need to use the Data Analysis ToolPak. If you have a Mac with Excel 2011, you may need to use StatPlus: MAC LE. Sources used for this assignment include: Share prices were downloaded from Yahoo finance.

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