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  • Level: GCSE
  • Subject: Maths
  • Word count: 5858

Objective; to investigate the relationship between used car price and age of car.

Extracts from this document...

Introduction

30/6/03 Mathematics Coursework C+H/WK Objective; to investigate the relationship between used car price and age of car. Equipment; to do this task I will need the following equipment; Ruler, Pencil, Pen, Multimedia computer (to write up investigation in neat), And plenty of A4 paper. My Hypothesis; Since all the cars from the given data base are MODERN cars, I predict that they ONLY decrease in value once they are bought. It would be different for really old CLASSICS as they can be so old that they actually increase in their value as they age. This is because; 1. The demand of these cars rises as few are left available, from being scraped. 2. Since theses cars lack modern technology of galvanised metal, they suffer from rust, thus people selling them in mint condition spent thousands of pounds restoring the car to it's original condition, hence they want that money back when they come to sell it. 3. The cars are different from modern cars, and give the owner a high status through being so immensely unique. Because all these cars in the database are all modern, the cars should, in my prediction decrease in value as they age and those that are guaranteed to become classics may depreciate slower in value than those that aren't. Also those of luxury and prestigious names like Mercedes, Bentley and Rolls-Royce, and those that have a high demand will loose their value more slowly then those that aren't, but just as a generalisation, no matter what car i choose, the older it is, the lesser it's value is against those that are younger. This means that in the graphs I produce there is a TREND in the cars correlation which must be NEGATIVE in order for my hypothesis to be true. Sampling; (Planning) My plan involves selecting 40 cars from the total of 100 cars by car in the list. ...read more.

Middle

As you can see from the line i drew on the graphs the 2 other cars I mentioned that were vastly higher in price than the others for the same age join coincidentally almost perfectly up together with the fiesta at the bottom. I know it is false as the Ford Fiesta is a very simple car that owners wouldn't sell for a complex price- probably �1,700 not an absurd �1,664!. However as the rest of the data presents the older the car is the lesser it's price is against those that are younger. This means that my Hypothesis is correct but just to be sure before I do my predictions I will produce another scatter diagram which gives the mean price data for each car age group. This means adding all the cars prices together for each age group and dividing it by how many cars there are in that age group; Mean price for 1 year in pounds(�) = (6,795+7,995+13,500+10,999)/4 = 32,289/4 = 9,822.25 Mean price for 2 years in pounds(�) = (4,995+4,995+7,999+5,999)/4 = 23,988/4 = 5,997 Mean price for 3 years in pounds(�) = (5,999+4,500+3,999)/3 = 14,498/3 = 4,832.67 Mean price for 4 years in pounds(�) = (6,999+3,995+4,300+3,769+6,895)/5 = 25,958/5 =5,191.60 Mean price for 5 years in pounds(�) = (3,400+4,693+3,495)/3 = 11,588/3 = 3,862.67 Mean price for 6 years in pounds(�) = (3,685+6,995+2,995+3,795+6,995+2,800+2,975)/7 => mean price = 30,240/7 = 4,320 Mean price for 7 years in pounds(�) = (3,695+1,500+2,595+3,495+1,595+795)/6 = 13,675/6 => mean price = 2,279.17 Mean price for 8 years in pounds(�) = (1,495+1,995+2,450+1,795)/4 = 7,735/4 = 1,933.75 Mean price for 9 years in pounds(�) = (1,595+1,195)/2 = 2,790/2 = 1,395 Mean price for 10 years in pounds(�) = (1,664+1,000)/2 = 2,664/2 = 1,332 Then I used exactly the same procedures as with the last graph, listing the car data on excel to process it onto a scatter diagram over the next page. ...read more.

Conclusion

A cars value is around 30% it's value at 10 years old compared to when it is 4 years old 2. That super cars cost almost 20 times more than popular cars when they are 7.5 years old! 3. Than popular modern cars cost around �500-�750 more when they are 4 years old compared to when they are 5 years old. 4. That super cars have a difference in price between 6 years and 7.5 years 6 times more than then difference for the same aged modern, cheap and popular cars. 5. That the depreciation of modern cars by 7.5 years is twice as fast as that for same aged super cars. Comparing these statements to my hypothesis I know that my hypothesis is correct as modern cars do depreciate in value, hence the reason why there is negative correlation in all the graphs, that more prestigious cars like the Ferrari do depreciate slower than those that are less desirable, and even the cheapest new cars like the new Volkswagen Beetle hold their value well because of their high demand. Also the part that says there's a trend in the cars values compared to their ages is true as from the first scatter diagrams only 3 out of about 40 cars were out of that trend. Evaluating; I would say that this investigation has been a success. I managed to find a link between the car price and car age and managed to make points on how this differs throughout certain ages and for certain types of cars. If I were to redo this investigation, I would make sure that I had a bigger range of cars to choose from with a bigger age range of perhaps 1 to 50 years not 1 to 10. I'd also use cars in the graph that have ages between whole years like 4.5 years and 6.7 years etc... I'd also used a larger sample of perhaps 200 cars instead of just 40 as which would give a better mean price for the value of cars in one particular age group. ...read more.

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