# Show that certain aspects of cars can determine the price of a second hand car.

Introduction

In this investigation, I am going to show that certain aspects of cars can determine the price of a second hand car.

In this investigation, I have made the following hypotheses:

• The price of a new car will decrease the most in the first few years
• There will be a positive correlation between the depreciation and the age
• The make will influence the price of the second hand car
• There will be a positive correlation between the engine size and the price of the second hand car
• There will be a negative correlation between the mileage and the price of the second hand car
• The colour will not influence the price of the second hand car
• The fuel type will not influence the price of the second hand car

The main variables in this investigation that could make a difference on my investigation are the following:

• Make
• Second hand price
• Age
• Engine size
• Mileage

To do this investigation properly, I will need to prove my hypotheses. This will be done by me collecting the data from the database that was issued to us at the beginning of this investigation. I have also looked at sources from websites and car magazines regarding the prices of second hand cars. Second hand car dealers, newspapers and the television also are very useful sources of information. These sources will be very useful as for example the car dealers, they would have a lot of knowledge regarding second hand car sales.

I will be selecting many pieces of data from the database in order for me to work out which aspects of a car will determine the second hand price. Using a vaster majority of cars will help me to see which aspects can change the prices of the second hand cars.

The statistical techniques that I am going to use are going to be cumulative frequency graphs and tally charts. These calculations will be enabling me to work out many things, for example the depreciation. I will also be able to notice things as I look at the graphs when I have plotted them.

On the next page is a copy of the database that was issued to us. I will only be using the first section of 100 cars as I think that the relevant information that I will require for this investigation is only mentioned in the first section. The second section features data that is about ‘extras’ such as how many doors, seats, air conditioning, etc.

My first hypothesis was that the price of a car would decrease the most in the first few years. I now intend to prove this hypothesis to be correct.

Firstly I will take the first 3 cars in the age group of 1 year old. I will then work out the depreciation. This will be done by using the formula:

Selling price (second/hand)

X 100 =         %        100 -                  =              %

Cost price (when new)

The first 3 cars that I have taken from the database that are in the age group of 1 ...