• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17
  • Level: GCSE
  • Subject: Maths
  • Word count: 3996

Handling data Used car prices

Extracts from this document...

Introduction


Introductionimage00.pngimage01.jpgimage04.jpg

The overall aim of this project is to find out what the major influences are affecting the price of a second hand car. There are some major influences directly affecting the price, i.e. the age of the car, the number of miles done by the car since its production and the number of modern features the car has. In this project I will be looking at the age and the mileage and how they affect the price of a second hand car.

Aims

  1. Assess whether there is a link between the percentage of depreciation in the value of the car from new to second-hand and the age of it and its mileage.

My first aim is to find out how the 2 biggest influences affect the value of it when bought second hand. The percentage of depreciation in the value of the car is affected by many other factors; however, here I am trying to find out how the age and mileage alone affects it. The first two hypotheses stated below will help me investigate this objective.

  1. Investigate what style of car has the largest depreciation value.

This aim is different from the first one because it now looks at how the style of the car affects the depreciation value. I will be looking at hatchbacks, saloons and others (coupes, utilities and azuras) as part of this investigation. From this I will be able to see which style of car causes the largest drop in price, regardless of the age and the miles done by the car.  

Hypothesises

  1. Relating to the first aim, I predict that as the age of the car increases, the percentage of depreciation in the value of the car increases.

...read more.

Middle

image05.png

        The graph shown above shows a very good upwards trend. There is a strong positive correlation between the value of depreciation and the age in years of the cars. The graph shows that the older the car the bigger the difference between price of the car when new and second hand will be. For an older car, the age has more significance when determining the price of the second-hand car. A car that is only one or two years old is still relatively new so therefore many other factors are taken into account as well. A car that is old generally has done more miles, shown by this graph below. This graph shows the general relationship between age and mileage. The graphs states that generally as the age increases the number of miles done by the car increases. In such a large sample of 10 cars, there are a few exceptions and anomalies that do not comply with this rule. This may be due to the fact that some people use their car a lot more than the average person does. image06.png

Using this equation I can then predict the value of depreciation of a car by knowing its year using the general equation of the line. The equation of this line is

y = 11x + 29. I will now pick a car from random that was not used in the stratified sample and see if it works in the graph and the equation. I have taken car number 22 which is the Rover 114Sli. This car is 6 years old and has depreciated in value by 71%. From the graph, the red dotted line shows that the depreciation value is actually 68%. It is only out by 3%.

...read more.

Conclusion

image11.png

The third graph shows the value of depreciation of the other styles of cars against the number of cars that are in each group. image02.png

From the polygons shown above, we can see that other cars and hatchbacks have most of the frequencies concentrated towards the middle percentages of depreciation. For the saloon it is more evenly spread. There is no perfect trend for any of the graphs, however, the hypothesis I stated above is correct because the saloon is the lowest. I predicted that out of the three styles of cars, the saloons would have the lowest effect on the depreciation value. This is due to this style of car being very modern and attractive compared to the other styles. This means that being a saloon will mean that the depreciation value will depreciate least, based only on this aspect of the car. If it were any other style, then that would have a greater influence on the depreciation value. image03.png

I think that this hypothesis would have been improved if I had grouped the data in a more effective way than just in groups of 20%, this would have the results more accurate.

From this project I have seen that there are two major influences that strongly affect the price of a car that is second hand. These are the age of the car and how many miles the car has done in its lifetime. These two influences have a close relationship shown by the product moment correlation coefficient. I have shown that they have a heavier influence on the depreciation value of the car when the age of the car is higher than younger cars. In this project, the main aim was to find out what the major influences was that affected the price of a second hand car. Although the style of the car was very important, the main factors were age and mileage.

...read more.

This student written piece of work is one of many that can be found in our GCSE Gary's (and other) Car Sales section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Gary's (and other) Car Sales essays

  1. Statistics: Factors Affecting the Price of Used Cars

    Also, I used unequal widths because there are some big gaps in the data. I put this data onto a pie chart and bar chart so that the percentage and frequency of a certain group can be seen quickly and easily.

  2. Maths Coursework:Used Cars

    The correlation got stronger when I looked at only one make because one make of car is likely to have a certain trend with it i.e.

  1. I have been given instructions to collect data for my GCSE statistics coursework and ...

    hypothesis I stated that the amount of owners would affect the price, the more owners, the less the price will be. When looking at the chart above, you can see that the cars with 3 owners, the two fiats are very low in price, but comparing this to the others that have one, they are more.

  2. Maths Data Handling-Secondhand Car

    a possible correlation and this proves that the colour of the car has minute effects on the price. Engine Size against Price: As you can see there is one point in this scatter graph which has caused the graph to look wrong and this point belongs to the Peugeot Graduate

  1. Used Cards - find which factors will influence the price of a second hand ...

    10700 12000 148 Chrysler GrandVoyager 6690 15000 156 Land Rover Range Rover 7735 12000 166 Mercedes M-Class 25810 19000 169 Ford Explorer 4715 10000 177 Mercedes A-Class 12320 80000 190 Ford Escort 1225 10000 Analysing and Calculating To analyse my data I will use a "XY scatter graph" as I

  2. Maths Data Handaling

    26 85 �7,740.00 �3,495.00 55000 53 27 86 �7,659.00 �1,664.00 37000 75 28 91 �7,510.00 �3,769.00 38000 30 29 92 �8,710.00 �4,693.00 50000 46 30 94 �5,445.00 �1,195.00 52000 64 I am now going to explain how I had worked out % price drop in price The formula is %Price

  1. Used second hand cars

    4700 5 34000 57 Ford 8680 3200 4 27000 64 Ford 14505 8800 2 7200 65 Ford 13230 8250 3 34000 80 Ford 13183 3495 7 43000 81 Ford 17780 7995 4 30000 86 Ford 6590 1664 10 37000 96 Ford 15405 3995 5 57000 33 Ford 7310 1050 8

  2. Maths Coursework - Used Cars

    Rover Metro 6. Rover 214i 7. Rover 623GSi 8. Rover 620Si 9. Rover Club 10. Rover 623 GSi 11. Rover Metro 12. Rover 416i I have now got my sample of cars that I need for my investigation. I will now move on to compare the factors that affect the price of a second hand car the most.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work