Introduction
Individual Assignment— Business Statistics and Data Analysis
Details of the task
Background:
You are thinking of investing in the UK stock market; you know that different factors can impact the stock prices and you are particularly interested to find out if there is a significant relationship between Stock price and House price, and Stock price and Bitcoin price; so that you can predict the Stock prices based on the movements of these variables (House price & Bitcoin price).
Use the provided data set, perform appropriate analysis, and write a report of 2000 words based on your analysis. To write your report and justify the findings, you are encouraged to refer to 3 to 5 related peer-reviewed academic journal articles as well as textbooks.
Your report should contain the following:
• Abstract (No more than 50 words) (5 Marks)
• Introduction (10 Marks)
• Main body, which should also be organised under appropriate headings* (75Marks)
• Conclusion (5 Marks)
• References (5 Marks)
Total:100 Marks
* In the main body of the report you are required to
a) Report the descriptive statistics (summary statistics) for each variable (Stock price, House price, and Bitcoin price).
(15 Marks)
b) Plot time series graph for each variable (Stock price, House price, and Bitcoin price) and provide a summary of the movement of the variables in the period of the study.
(15 Marks)
c) Plot scatter graphs of Stock price against House price, and Bitcoin price and explain the graphs (TWO scatter graphs should be reported; in first scatter graph, Y-axis is Stock price and X-axis is House price and in the second scatter graphs Y-axis is Stock price and X-axis is Bitcoin price).
(10 Marks)
d) Calculate the correlation between Stock price, and House price, and Stock price, and Bitcoin price and report your findings. Justify your results with the scatter graphs in part c.
(15 Marks)
e) Calculate the equation of the regression line between Stock price, and House price, and Stock price, and Bitcoin price; then interpret regression analysis results based on P-Values and Coefficients. (TWO regression lines should be reported; in first regression line, dependent variable is Stock price and independent variable is House price and in the second regression line dependent variable is Stock price and independent variable is Bitcoin price). Explain which variable seems to be a better predictor for the Stock price.
(20 Marks)
***Note: In the provided data set you have below monthly time series data for the period of 31/01/2019 to 29/12/2023.
Below indices are used for the variables:
Dependent Variable (Stock price): MCX Index
Independent Variable (House price): UKLHUK Index
Independent Variable (Bitcoin price): BTC Index
Student Assignment Guidelines
In your report, you should demonstrate your knowledge of and ability to explain and apply statistics theory. You must justify any conclusion you reach on the basis of evidence provided by you by reference to, or quotation from, the course notes, textbooks, other course readings, or any other source you choose to use. As long as your report gives a good justification and demonstrate your reasoning ability and your knowledge, you can obtain a good grade.
Presentation
Your work should be word processed in accordance with the following:
• Font style, Lucida Sans, font size 12
• 1.5 line spacing.
• The page orientation should be ‘portrait’
• Margins on both sides of the page should be no less than 2.5 cm
• Pages should be numbered
• Your name should not appear on the script.
• Your student number should be included on every page.
Skills Advice
Refer to your material provided in your skills modules to make sure that you have conformed to academic conventions. Pay particular attention to:
• Your introduction,
• Your conclusion,
• The use of headings and/or signpost words
• Paragraph structure
Referencing
The university expects students to use Harvard referencing as specified in the book Cite them Right.
• Refer to Referencing Information | University of East London (uel.ac.uk) for further advice and a link to an online version of Cite them Right
• You should be careful to include citations within your work as well as a reference list at the end.
Word Count
Your word count should not include your title page, table of contents, reference list or appendices. You should provide your word count at the end of your report. Exceeding the word count by more than 10% will result in a penalty of 10% of your marks for your work.
If your work is significantly shorter, then you will probably have failed to provide the level of detail required.
