Business Report and Brief

Running head: ECON 1030 BUSINESS REPORT 1
Business Report and Brief
Student’s Name
Institutional Affiliation

BUSINESS REPORT AND BRIEF 2
Business Report and Brief
Executive Summary
Bitcoin is a type of payment network using block technology. Statistical analysis was
employed in this study to give a scientific recommendation on whether to invest in Bitcoin. This
was done through using recent prices and past data to advise investors on whether there is
sufficient confidence to invest in this technology. In this study, four securities in the Australian
market were picked and their trend and rate of returns evaluated for conclusions to be made.
Bitcoin was found to have a positive rate of return of between 0.05% and 3.12% which was the
highest hence can be recommended for investment.
Introduction
Cryptocurrencies are an application of the recent blockchain technology which is become
popular in most parts of the word. It uses the encryption technique to ensure security is
guaranteed in regulating of the financial transactions. An example of cryptocurrency
technologies is Bitcoin. This a kind of payment network that utilizes technology to control
tractions without any bank intervention. Over the recent few years, its growth has been catalyzed
by a stable market, adoption and favoring policies. Considering the many uncertainties that
encompass cryptocurrency, there is a need to investigate its viability and predict its future. Using
past data analysis was done to allow giving viable advice to investors on whether to invest in
Bitcoin.
Question 1
3/9/2014
5/25/2014
8/10/2014
10/26/2014
1/11/2015
3/29/2015
6/14/2015
8/30/2015
11/15/2015
1/31/2016
4/17/2016
7/3/2016
9/18/2016
12/4/2016
2/19/2017
5/7/2017
7/23/2017
10/8/2017
12/24/2017
3/11/2018
5/27/2018
8/12/2018
10/28/2018
1/13/2019
$-
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
Weekly Closing Prices of BIT
Date
Closing Price
Figure 1: BIT Closing Price Trend
Figure 1 is the scatter diagram that shows the trend of the closing weekly share price of
Bitcoin.The closing prices are taken as the dependent variable and is plotted on the y-axis.
(Chambers, 2017).The time period is taken as the independent variable. The trend line shows that
the closing prices increasing from the negative side to the positive side From March 2014 the

BUSINESS REPORT AND BRIEF 3
BIT prices were found to increase steadily over the world period. The closing prices averaged at
AU$ 572 from 2014 to 2016.An upward trend was observed from2017 to mid-2018 when the
share prices started declining. Since then they were found to fluctuate In 10th December 2017, the
highest closing price was recorded at AU$.25, 986.55
Question II
-39.755--29.755
-29.755--19.755
-19.755--9.755
-9.755-0.244999999999997
0.245-10.245
10.245-20.245
20.245-30.245
30.245-40.245
40.245-50.245
0
20
40
60
80
100
Bitcoin Weekly Rate of Return
Rate Class Limits
Frequency
Figure 2: BIT Histogram on Rates of Return
The histogram above portrayed the BIT rate of returns as normally distributed since the
histogram bars were found to form a bell-shaped curve. No outliers were reported.
Question III
Summary Statistics Weekly Return
Mean 1.6
Standard Error 0.8
Median 1.2
Standard Deviation 12.6
Sample Variance 159.0
Kurtosis 3.0
Skewness 0.6
Range 105.4
Minimum -39.8
Maximum 65.7
Sum 412.4
Count 260.0
Table 1: BIT Summary statistics

BUSINESS REPORT AND BRIEF 4
According to the instructions, three points descriptive analysis of the BIT rate of return was to be
analyzed.This involves location, shape, and spread. From the above table, the average rate of
return for this share was 1.6%. The mean of 1.6% represents the location of the distribution. The
shape of the distribution was measured by the values of Skewness and kurtosis. The distribution
was found to have a positive kurtosis and Skewness figures of 3.0 and 0.6 respectively. This is a
suggestion that the distribution of BIT is spread more on the positive side of the distribution
(most are in the right side of the median value). The standard deviation of BIT 12.6.The
maximum recorded rate of return was 65.7% and a minimum of -39.8%. This creates a range of
105.4. The values show the spread of this distribution. Lastly, the distribution of BIT rate of
return can be said to be multimodal since it had no specific value of mode.
.
Question IV
Empirical probability can be expressed as the number of times that a given even was
registered divided by the total possible events in the experiment.
Therefore the probability of BIT making a loss= Number of times a loss was registered / Total
Outcomes
P=114/260=0.44.
There is thus a 44% likelihood of getting a loss from BIT
Question V
3/9/2014
5/25/2014
8/10/2014
10/26/2014
1/11/2015
3/29/2015
6/14/2015
8/30/2015
11/15/2015
1/31/2016
4/17/2016
7/3/2016
9/18/2016
12/4/2016
2/19/2017
5/7/2017
7/23/2017
10/8/2017
12/24/2017
3/11/2018
5/27/2018
8/12/2018
10/28/2018
1/13/2019
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
Weekly Closing Prices of NAB
Date
Closing Price
Figure 3: NAB Closing Price Trend
The scatter diagram of NAB closing price shows a fairly fluctuating trend from the year
2014 to date. Some values were noted to appear above and below the line of best fit. No negative
price was registered for this stock.