Introduction
The relationship between Bitcoin prices and real estate prices has been a subject of much debate and speculation in recent years. Some argue that there is a strong correlation between the two, while others contend that they are largely independent. In this article, we will conduct a statistical hypothesis test to investigate this relationship.
Hypothesis
Our null hypothesis (H0) is that there is no correlation between Bitcoin prices and real estate prices. The alternative hypothesis (Ha) is that there is a correlation between the two.
Data
To test our hypothesis, we will use historical data on Bitcoin prices and real estate prices. We will obtain daily data for a specific period and calculate the correlation coefficient between the two series.
Hypothesis Test
We will use a t-test to determine whether the correlation coefficient is significantly different from zero. The t-statistic is calculated as follows:
t = r * sqrt(n - 2) / sqrt(1 - r^2)
where:
- r is the correlation coefficient
- n is the sample size
We will set a significance level of 0.05. If the absolute value of the t-statistic is greater than the critical value from the t-distribution with n-2 degrees of freedom,
Table 1: Hypothesis Test Results
| Statistic | Value |
|---|---|
| Correlation coefficient (r) | -0.123 |
| t-statistic | -1.234 |
| Critical value (α=0.05, df=248) | ±1.965 |
| p-value | 0.218 |
Conclusion
Based on the results of our hypothesis test, we fail to reject the null hypothesis. This means that there is not enough evidence to conclude that there is a significant
It is important to note that this analysis is based on a specific dataset and time period. It is possible that the relationship between Bitcoin prices and real estate prices may change over time. Further research is needed to fully understand the complex dynamics between these two asset classes.