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Econometrics: Can We Explain The Price of Leo When Considering Stacks.btc by iniobong3emm

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· @iniobong3emm ·
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Econometrics: Can We Explain The Price of Leo When Considering Stacks.btc
Using statistical methods to analyze crypto currencies is very important in decision making process. Its dependent on the question of your analysis and type of analysis required to be carried out.

I will be considering how to predict the price of leo token when checking for stacks coin price.

I shall consider the following subheadings as regards;

About Leofinance And Stacks

Conditions Satisfiable before prediction Analysis

Predicting Leo price using stacks

Conclusion

Other Images


About Leofinance And Stacks

Leofinance
Leofinance is a web3 based platform built on the hive block chain. It empowers and support users who creates contents as regards leo and its future. The native token of leofinance is leo. To Learn more about leofinance, visit https://leofinance.io

Stacks
Stacks is a decentralized network linked to bitcoin network. It’s native token is stack despite having its own block chain, it is linked to the bitcoin block chain. This indicates having a coin on its own block chain hosted on another block chain. This is also called first layer block chain or layer one block chain. To learn more about stacks, visit the link below https://www.stacks.co

Conditions Satisfiable before prediction Analysis

The following conditions are to be satisfied before proceeding to prediction

Entry variable And Model Summary
The entry variable talks about the price of stacks which is entered to predict the price of leo token.

![model summary.JPG](https://images.hive.blog/DQmQX1J21rV9kSc9ZYHZgetrVk5wnSzCwSPZAnPqkPU2exo/model%20summary.JPG)<center> Photo By Me </center>

As seen in the model summary, this analysis explains 43% of variance in the price of leo token.

Influence Analysis
This is also known as correlation analysis. It proves if there is any form of relationship between leo token and that of stacks. From the analysis of correlation. 

![correl.JPG](https://images.hive.blog/DQmY9c5x4sGtoqKEqn4xvxJ7UMLi7GkAhndNjtiyE7ph5on/correl.JPG)<center> Photo By Me </center>

There seem to be a positive relationship with coefficient (r = 0.661). This means that as the price of stacks is in a bull season that of leo will likewise be same and vice versa. 

Details of this can be seen in the anova model.

Anova 
The regression anova table has the hypothesis that there is no linear relationship between the variables in prediction. 

![anova.JPG](https://images.hive.blog/DQmfHm1GWbqSSfcRVLxkH7WECNDMxmjUJT6TYgUdscE5HbP/anova.JPG)<center> Photo By Me </center>

It can be seen that the result is highly significant from the null hypothesis. There is a linear relationship between the price of stacks.btc and that of leo.

Prove of Normality
Normality of data is not required when there are enough data samples, It can be seen that both sample data are normal in nature.

![normality.JPG](https://images.hive.blog/DQmbbmtwgGiLvWkWSBVwswCRdPokkf3DBxwbHqJE5cXXTGe/normality.JPG)<center> Photo By Me </center>

Predicting Leo price using stacks

Coefficient table

![coeffivient.JPG](https://images.hive.blog/DQmVaBeixwYBJhLq57nLtbCJupPiiad9iDDU7d8oVzRBeDj/coeffivient.JPG)<center> Photo By Me </center>

It can be seen in the coefficient table that the estimated price of leo is given by the equation below.

Price of leo = 0.009 + 0.144 * price of stacks

Using the price of Stacks on the 13th, August, 2022 which was $0.5220

Price of leo = 0.009 + 0.144 * 0.5220

Price of Leo = 0.009 +0.0751 = $0.084

This is the calculated value. Let’s refer to the value in the data entry below which was $0.891. the difference between the calculated  and estimated value is $0.0051.
 
Conclusion
This article has explained the price of leo using stacks.btc coin.

Data view

![daTA.JPG](https://images.hive.blog/DQmYtmF9BAkTySnY32yMoJau28PqoJXM1sApqGnoeuWHrzL/daTA.JPG)<center> Photo By Me </center>

Follow stacks on twitter
https://twitter.com/Stacks

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https://twitter.com/FinanceLeo

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