Application of Passive Methods of Robust Estimation: Baarda's and Pope's in Real Estate Market Analysis

Abstract

The article presents the results of research into the appraisal of the usefulness and effectiveness of passive methods of robust estimation in real estate market analysis. Two methods are considered, i.e.: Baarda's and Pope's. The research is based on a database of flats sold in Kraków in 2015. It has been proved that algorithms of robust estimation allow for eliminating outlying transactions from the collected database, causing the set of observations to become coherent and free of observations which might be fraught with gross error caused by the human factor.