COMM 215: BUSINESS STATISTICS

(Rajesh K Tyagi )
SECTION CC
WINTER 2018
Data Analysis Case Assignment – 10%
Topic: Google and Bitcoin stock performance
Data: GooglevsBitcoin.xls (on Moodle)
Due date: April 10th, 2018 or before
Description
As an analyst at a Portfolio manager you are tasked with the analysis of comparing Google stock

performance with Bitcoin performance. Your manager believes that Bitcoin stock merits a

second look and the portfolio should heavily invest into it. On the other hands, the group VP

believes that Google stock is the stock to pick.

Data has been collected on both stock performance for a given period in the enclosed Excel File.

The file shows the following common variables for both Google and Bitcoin stocks

VARIABLES EXPLANATION
DATE Date of data taken
OPEN Open stock price
HIGH High stock price for the day
LOW Low stock price for the day
CLOSE Closing price for the stock
VOLUME Total volume traded
WEIGHTED PRICE (Bitcoin) Weighted price for Bitcoin stock
Managerial Report
The goal of the report is to recommend a strategy to invest in these two stocks and pick the

winner and/or suggest an overall strategy. Use appropriate methods of descriptive statistics,

including tables and plots, box plots, mean/median/mode, standard deviation, to summarize
the data. Present the data in visual form that will be beneficial in communicating the results to

the top management. Follow the guideline to prepare the report.

As part of the analysis, you are expected to address the following specific questions:

1. Treating Closing price and Volume for both stocks,

a. Prepare tables of descriptive statistics for closing price.

b. Prepare tables of descriptive statistics for Volume.

c. Prepare bar-graph/histogram/boxplot comparison for two stocks performance.

Do plots suggest any difference in performance of the stock? Should you pick

another variable such as OPEN or HIGH as opposed to CLOSE?

d. Prepare Contingency tables for OPEN and HIGH Prices for both stocks.

e. Identify 95% confidence intervals for OPEN price for both stocks.

f. Prepare scatterplots of CLOSE, HIGH and OPEN price with time for both stock

prices. Discuss the nature of the relationship.

g. Discuss the correlation between the prices of two stocks and the significance of

the relationship, if any.

2. Use the least squares procedure to fit prediction equation for Stock Open price for

Google and for Bitcoin stock. Constrict confidence intervals for the significant

relationships and interpret your finding.

3. Do your results suggest any clear recommendation for investment? Write a brief report

based on your results rom above questions.