Hello everyone!

This is my 6th #utopian-io tutorial contribution for Apache Open Office. Today, I would discuss about how to how to conduct Z-test to test a possible increase in Steem Dollar (SBD) price for the January 2018. 

Introduction

With the increase in the popularity of #Steemit, new user, like me, want to know how much would increase or decrease in the price of SBD. The data gathered in this tutorial is solely-based on the historical data from www.coinmarketcap.com . The prediction of up and down in pprice with be based on the result of conducted Z-test. To begin with, let first define Z-test.

What is Z-test?

  A z-test is a statistical testing tool used to determine by which the two population means (low or high) are different when the variances are known and the sample size is large. The test statistic is assumed to have a normal distribution, and parameters such as standard deviation should be known for an accurate z-test to be performed.. 

A step-by-step guide on how to conduct Z-test statistics to predict a possible increase and decrease in USD price of Steem Dollar (SBD) for the January 2018 using Apache Open Office.

Step 1: Open "Apache Open Office spreadsheet"

To open the Apache Open Office spreadsheet, locate the desktop shortcut and double click. Then select spreadsheet.

Step 2: Copy the data from www.coinmarketcap.com.

Go to www.coinmarketcap.com, and search for SBD.

Then, go to its historical data.

Copying historical data

Paste to Open Office Spreadsheet

Step 3: Perform Z-test.

Set hypothesis (Ho) and alternative (Ha) values to test. Ho values will predict a substantial increase to 15 USD per 1 Steem Dollar. On the otherhand, Ha neglects a substantial increase up to 15 USD per 1 Steem Dollar.

Calulate population standard deviation

select statistic, then stddev.

Add data

select data range

compute z-score. Click fx , select statistics, then click z-test

select data range either by clicking the cells or by typing the cell range address

select H0 either by clicking the cell or by typing the cell address

select standard deviation

The result is Z = 1

Interpretation

With a p (z = 1) value, having a confidence interval of 0.05, Ho is accepted with 84.13 % probability that on January 2018 the value of Steem Dollar (SBD) will reach 15 USD.Thus, rejecting the alternative Ha of less than 15 USD.

Thank you for dropping by! Have a nice day ahead!

Best regards,

@juecoree

(snapshot credit: @juecoree | other images: 1 | references: 12)

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Posted on Utopian.io - Rewarding Open Source Contributors

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