Problem 1: Determining the trend for Bitcoin prices:
a) We are given a table containing Bitcoin prices in USD for the years 2010-2017. Determine a linear trend line for these prices. The monthly price is taken from the first day in each month:
Date: year-month-day | Bitcoin price in USD |
2010-12-01 | 0.23 |
2011-06-01 | 9.57 |
2011-12-01 | 3.06 |
2012-06-01 | 5.27 |
2012-12-01 | 12.56 |
2013-06-01 | 129.3 |
2013-12-01 | 946.92 |
2014-06-01 | 629.02 |
2014-12-01 | 378.64 |
2015-06-01 | 223.31 |
2015-12-01 | 362.73 |
2016-06-01 | 536.42 |
2016-12-01 | 753.25 |
2017-06-01 | 2,452.18 |
b) As per the linear trend line from part a), what is the expected price of Bitcoin in 2020?
c) Discuss whether a linear line is a good indicator for the future price of Bitcoin.
Problem 2: Electronics shop's sales: Using the data in the electronics shop's sales example, predict the sales for every month of the year 2019.