Hypothesis testing#446
Closed
abhishekrahul93 wants to merge 1 commit intodata-bootcamp-v4:mainfrom
Closed
Conversation
This file contains hidden or bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Sign up for free
to join this conversation on GitHub.
Already have an account?
Sign in to comment
1 participant
Add this suggestion to a batch that can be applied as a single commit.This suggestion is invalid because no changes were made to the code.Suggestions cannot be applied while the pull request is closed.Suggestions cannot be applied while viewing a subset of changes.Only one suggestion per line can be applied in a batch.Add this suggestion to a batch that can be applied as a single commit.Applying suggestions on deleted lines is not supported.You must change the existing code in this line in order to create a valid suggestion.Outdated suggestions cannot be applied.This suggestion has been applied or marked resolved.Suggestions cannot be applied from pending reviews.Suggestions cannot be applied on multi-line comments.Suggestions cannot be applied while the pull request is queued to merge.Suggestion cannot be applied right now. Please check back later.
📝 Hypothesis Testing: Housing Prices and Proximity to Amenities
In this analysis, we examine whether houses located close to essential amenities are more expensive than those located farther away. Specifically, we test whether neighborhoods situated within a distance of 0.50 units from either a school or a hospital have higher median house values compared to those that are farther away.
Euclidean distance was used to calculate the distance between each neighborhood and the given school and hospital coordinates. Based on this distance, the dataset was divided into two independent groups: houses considered close to an amenity and houses considered far from both amenities.
A one-tailed independent two-sample t-test (Welch’s t-test) was conducted at a 5% significance level to compare the mean median house values between these two groups. This test is appropriate as the two samples are independent, the target variable is continuous, and population variances are unknown.
The results indicate that houses close to a school or hospital have a higher average median house value than houses located farther away. With a p-value below the 0.05 significance threshold, we reject the null hypothesis, providing statistical evidence that proximity to key amenities is associated with higher housing prices.