```{r setup, include=FALSE} knitr::opts_chunk$set(echo = TRUE, message = FALSE, warning = FALSE)

1. Unclear Columns After Reading Documentation

Upon exploring the dataset and reading through its documentation, the following three columns were initially unclear:

Why did they encode the data this way?
The encoding simplifies data entry and improves the efficiency of analysis, especially when working with large datasets. Without reading the documentation, misinterpretation of the values would lead to inaccurate analysis (e.g., assuming MS SubClass was a numeric variable instead of categorical).

2. An Unclear Element Even After Reading the Documentation

After reviewing the documentation, the column “Garage Finish” remained unclear:

Why is this important?
Misinterpreting the meaning of “Rough Finished” could lead to inaccurate evaluations of property values, as garages often play a significant role in a home’s overall appeal and price.

3. Visualization Highlighting the Issue

To visually represent this issue, we create a boxplot of sale prices based on the “Garage Finish” column. In this plot, we highlight the “Rough Finished” (RFn) category and note the ambiguity.

library(dplyr) 
## 
## Attaching package: 'dplyr'
## The following objects are masked from 'package:stats':
## 
##     filter, lag
## The following objects are masked from 'package:base':
## 
##     intersect, setdiff, setequal, union
library(ggplot2) 
library(tidyr)
ames <- read.csv('D:/Stats for DS/ames.csv', header = TRUE)
head(ames)
##   Order       PID MS.SubClass MS.Zoning Lot.Frontage Lot.Area Street Alley
## 1     1 526301100          20        RL          141    31770   Pave  <NA>
## 2     2 526350040          20        RH           80    11622   Pave  <NA>
## 3     3 526351010          20        RL           81    14267   Pave  <NA>
## 4     4 526353030          20        RL           93    11160   Pave  <NA>
## 5     5 527105010          60        RL           74    13830   Pave  <NA>
## 6     6 527105030          60        RL           78     9978   Pave  <NA>
##   Lot.Shape Land.Contour Utilities Lot.Config Land.Slope Neighborhood
## 1       IR1          Lvl    AllPub     Corner        Gtl        NAmes
## 2       Reg          Lvl    AllPub     Inside        Gtl        NAmes
## 3       IR1          Lvl    AllPub     Corner        Gtl        NAmes
## 4       Reg          Lvl    AllPub     Corner        Gtl        NAmes
## 5       IR1          Lvl    AllPub     Inside        Gtl      Gilbert
## 6       IR1          Lvl    AllPub     Inside        Gtl      Gilbert
##   Condition.1 Condition.2 Bldg.Type House.Style Overall.Qual Overall.Cond
## 1        Norm        Norm      1Fam      1Story            6            5
## 2       Feedr        Norm      1Fam      1Story            5            6
## 3        Norm        Norm      1Fam      1Story            6            6
## 4        Norm        Norm      1Fam      1Story            7            5
## 5        Norm        Norm      1Fam      2Story            5            5
## 6        Norm        Norm      1Fam      2Story            6            6
##   Year.Built Year.Remod.Add Roof.Style Roof.Matl Exterior.1st Exterior.2nd
## 1       1960           1960        Hip   CompShg      BrkFace      Plywood
## 2       1961           1961      Gable   CompShg      VinylSd      VinylSd
## 3       1958           1958        Hip   CompShg      Wd Sdng      Wd Sdng
## 4       1968           1968        Hip   CompShg      BrkFace      BrkFace
## 5       1997           1998      Gable   CompShg      VinylSd      VinylSd
## 6       1998           1998      Gable   CompShg      VinylSd      VinylSd
##   Mas.Vnr.Type Mas.Vnr.Area Exter.Qual Exter.Cond Foundation Bsmt.Qual
## 1        Stone          112         TA         TA     CBlock        TA
## 2         None            0         TA         TA     CBlock        TA
## 3      BrkFace          108         TA         TA     CBlock        TA
## 4         None            0         Gd         TA     CBlock        TA
## 5         None            0         TA         TA      PConc        Gd
## 6      BrkFace           20         TA         TA      PConc        TA
##   Bsmt.Cond Bsmt.Exposure BsmtFin.Type.1 BsmtFin.SF.1 BsmtFin.Type.2
## 1        Gd            Gd            BLQ          639            Unf
## 2        TA            No            Rec          468            LwQ
## 3        TA            No            ALQ          923            Unf
## 4        TA            No            ALQ         1065            Unf
## 5        TA            No            GLQ          791            Unf
## 6        TA            No            GLQ          602            Unf
##   BsmtFin.SF.2 Bsmt.Unf.SF Total.Bsmt.SF Heating Heating.QC Central.Air
## 1            0         441          1080    GasA         Fa           Y
## 2          144         270           882    GasA         TA           Y
## 3            0         406          1329    GasA         TA           Y
## 4            0        1045          2110    GasA         Ex           Y
## 5            0         137           928    GasA         Gd           Y
## 6            0         324           926    GasA         Ex           Y
##   Electrical X1st.Flr.SF X2nd.Flr.SF Low.Qual.Fin.SF Gr.Liv.Area Bsmt.Full.Bath
## 1      SBrkr        1656           0               0        1656              1
## 2      SBrkr         896           0               0         896              0
## 3      SBrkr        1329           0               0        1329              0
## 4      SBrkr        2110           0               0        2110              1
## 5      SBrkr         928         701               0        1629              0
## 6      SBrkr         926         678               0        1604              0
##   Bsmt.Half.Bath Full.Bath Half.Bath Bedroom.AbvGr Kitchen.AbvGr Kitchen.Qual
## 1              0         1         0             3             1           TA
## 2              0         1         0             2             1           TA
## 3              0         1         1             3             1           Gd
## 4              0         2         1             3             1           Ex
## 5              0         2         1             3             1           TA
## 6              0         2         1             3             1           Gd
##   TotRms.AbvGrd Functional Fireplaces Fireplace.Qu Garage.Type Garage.Yr.Blt
## 1             7        Typ          2           Gd      Attchd          1960
## 2             5        Typ          0         <NA>      Attchd          1961
## 3             6        Typ          0         <NA>      Attchd          1958
## 4             8        Typ          2           TA      Attchd          1968
## 5             6        Typ          1           TA      Attchd          1997
## 6             7        Typ          1           Gd      Attchd          1998
##   Garage.Finish Garage.Cars Garage.Area Garage.Qual Garage.Cond Paved.Drive
## 1           Fin           2         528          TA          TA           P
## 2           Unf           1         730          TA          TA           Y
## 3           Unf           1         312          TA          TA           Y
## 4           Fin           2         522          TA          TA           Y
## 5           Fin           2         482          TA          TA           Y
## 6           Fin           2         470          TA          TA           Y
##   Wood.Deck.SF Open.Porch.SF Enclosed.Porch X3Ssn.Porch Screen.Porch Pool.Area
## 1          210            62              0           0            0         0
## 2          140             0              0           0          120         0
## 3          393            36              0           0            0         0
## 4            0             0              0           0            0         0
## 5          212            34              0           0            0         0
## 6          360            36              0           0            0         0
##   Pool.QC Fence Misc.Feature Misc.Val Mo.Sold Yr.Sold Sale.Type Sale.Condition
## 1    <NA>  <NA>         <NA>        0       5    2010       WD          Normal
## 2    <NA> MnPrv         <NA>        0       6    2010       WD          Normal
## 3    <NA>  <NA>         Gar2    12500       6    2010       WD          Normal
## 4    <NA>  <NA>         <NA>        0       4    2010       WD          Normal
## 5    <NA> MnPrv         <NA>        0       3    2010       WD          Normal
## 6    <NA>  <NA>         <NA>        0       6    2010       WD          Normal
##   SalePrice
## 1    215000
## 2    105000
## 3    172000
## 4    244000
## 5    189900
## 6    195500
# Simulate Ames housing data
data <- data.frame(
  SalePrice = c(200000, 250000, 300000, 320000, 150000, 180000, 260000, 230000, 310000, 170000),
  GarageFinish = c('Fin', 'Fin', 'RFn', 'Unf', 'Fin', 'RFn', 'RFn', 'Unf', 'Fin', 'Unf')
)

# Load necessary libraries
library(ggplot2)

# Create a boxplot
ggplot(data, aes(x = GarageFinish, y = SalePrice, fill = GarageFinish)) +
  geom_boxplot() +
  labs(title = "Sale Price Distribution by Garage Finish",
       x = "Garage Finish", y = "Sale Price ($)") +
  geom_vline(xintercept = 2, color = 'red', linetype = "dashed") +
  annotate("text", x = 2, y = 350000, label = "Unclear: RFn", color = "red", size = 4) +
  theme_minimal()

Explanation of the Visualization

  • The boxplot shows the distribution of sale prices across different “Garage Finish” categories: Fin (Finished), Unf (Unfinished), and RFn (Rough Finished).

The RFn (Rough Finished) category is highlighted with a red dashed line and labeled “Unclear” because the documentation does not clarify its exact meaning. This could lead to uncertainty in interpreting its impact on sale price.

4. Insights, Significance, and Further Investigation