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PBL Assignment

This document summarizes an analysis of price differences between HDB resale flats in different sectors in Singapore. The analysis uses a t-test to compare price data from two sectors after filtering the data to flats within 500m of MRT that were sold after 2021. The t-test finds a significant difference between the average prices of flats in sectors like Balestier, Toa Payoh, and Serangoon compared to sectors like Geylang and Eunos. Some limitations of a potential type 1 error are noted.

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Vance Kang
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80 views9 pages

PBL Assignment

This document summarizes an analysis of price differences between HDB resale flats in different sectors in Singapore. The analysis uses a t-test to compare price data from two sectors after filtering the data to flats within 500m of MRT that were sold after 2021. The t-test finds a significant difference between the average prices of flats in sectors like Balestier, Toa Payoh, and Serangoon compared to sectors like Geylang and Eunos. Some limitations of a potential type 1 error are noted.

Uploaded by

Vance Kang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

PBL assignment

Vance Kang
Research Qn
• For couples looking for resale
because BTO/SBF is hard to get
• Is there a significant difference in
prices in HDB resale flats between
sectors 'Balestier, Toa Payoh,
Serangoon’ and 'Geylang, Eunos’.
• From the boxplot it seems to have
a difference but shall be using
independent T test to be sure
Preparing the dataset

• In order to make a more


representative study shall be reducing
noise of the dataset by limiting certain
conditions of the HDB
transactions(the conditions are
bellow)
• The "MRT dist category2"]=='Near’
means only HDB flats with an MRT
within 500m are considered
• Other conditions such as tranc year
after 2021, age of flat and floor area
are also chosen.
• They are then split into 2 datasets:
A. 'Balestier, Toa Payoh,
Serangoon’
B. 'Geylang, Eunos'
Information/distribution of dataset
To check for validity of use of
independent T-test
• Conditions for Using independent t-test
1. Need to ensure that the two samples are normally
distributed
1. As seen bellow, both samples are normally distributed
The p-value of the Levene’s test is less than 0.05,
suggesting that there is a significant difference
between the variances of the two groups. Therefore,
we’ll use the Welch t-test, which is for variances that
To check for is different

equal
variance
The test statistic turns out to be 5.19
and the corresponding p-value is
4.975e-07. Here the p-value is less than
0.05 hence we could reject the null
hypothesis of the test and the
conclusion that there is a significant
Conclusion difference between the resale price of
area of sectors 'Balestier, Toa Payoh,
Serangoon’ and 'Geylang, Eunos’

There is a possibility of Type I error


Statistics
Script
Reference
• Welch's t-Test in Python – GeeksforGeeks
• Normal Probability Plot - GeeksforGeeks

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