After I have made my graphs I will explain what the graph shows me and go into details. If I get anomalous results then I will make cumulative frequency graphs. With the help of the cumulative frequency graphs I would get rid of the anomalous results and also it would help me getting accurate results. This would help me come to a conclusion for the task I’m given to complete.
GENERAL PREDICTION
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AGE ::: I predict that the graph will show a negative correlation (the higher the age of the car, the lower the price of the second hand car).
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ENGINE ::: I predict that that the graph will show a positive correlation (the higher the engine size of the car, the higher the price of the second hand car).
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MILEAGE ::: I predict that the graph will show a negative correlation (the higher the mileage of the car, the lower the price of the second hand car).
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INSURANCE ::: I predict that the graph will show a positive correlation (the longer the insurance of the car, the higher the price of the second hand car).
I will also make Depreciation graphs. I would do this by taking the old price of the car and then dividing it by the new price of the same car. I will then multiply the answer by 100 and then take away the answer from 100 to get a depreciation of the car as a percentage. In the end I will evaluate my final results by showing the largest and the smallest influences.
How Age Influences the Price of a Used Car.
From my graphs I can conclude that the newer the car, the higher the price of the car. While comparing the two makes of cars, I found that most of the Ford cars have a higher price than the Vauxhall cars at the beginning but they fall in cost quicker after a few years.
Both the graphs have a negative correlation and even show similar results. According to the graphs the Ford cars have a stronger negative correlation than the Vauxhall cars. This shows that age has a bigger impact on Ford cars than it does on Vauxhall cars.
There are 6 Ford cars that are older than 6 years whereas there are 2 Vauxhall cars older than 6 years. This could have resulted in the Ford cars having a much steeper gradient.
How Engine Size affects a Used Car’s Price.
My graph tells me that the higher the engines size of the car, the higher the price of the car. They both show how a higher engine size normally results in a higher price. Both these graphs shows positive correlation.
Both of my graphs were different from each other. The graph went up to a maximum of engine size 2.5 in Ford cars whereas the graph went up to an engine size 3.0 in Vauxhall cars. If both graphs were on same scale, the gradients would have looked slightly different. I wasn’t able to keep the scale equal since the computer program would allow it.
The avg. size of a Ford car engine is 1.5 whereas its 1.3 in Vauxhall cars. This shows that both makes had roughly the same engine size. This makes my comparison fairer.
How the Price of a Used Car is influenced by Mileage.
My graph tells me that the lower the mileage, the higher the price of the car. My graphs also tell me that the Ford cars lose its price much faster than the Vauxhall cars. Both the graphs show a negative correlation. The Ford cars show a stronger negative correlation than the Vauxhall cars. This shows that the Ford cars are more greatly affected by mileage than the Vauxhall cars. The scales on my graph were different.
On Ford cars, the graph went up to a maximum mileage of 100,000 whereas in the Vauxhall cars the mileage went up to a maximum of 80,000. If both graphs were on same scale, the gradients would have looked slightly different. I wasn’t able to keep the scale equal since the computer program would allow it.
7 Ford cars were above 40,000 in mileage whereas there were 8 Vauxhall cars that had mileage over 40,000. From my graph I can see that a Ford car at 40,000 mileage costs around £12,500 whereas a Vauxhall car costs around£14,000. This shows that mileage has a much bigger influence on Vauxhall cars. On an avg. mileage is a big affect on both makes.
How a Used Cars Price is affected by Insurance.
My graphs show that the higher the insurance of the car, the higher the price of the car. Both the graphs have a positive correlation and show similar results.
Vauxhall cars have a stronger correlation than that of Ford cars. So the Vauxhall cars are more heavily influenced than the Ford cars. My graph shows that a Ford car costs approximately around £11,000 with 10 year insurance whereas a Vauxhall car costs around £12,000. This shows the difference between the two makes. This also shows that the name of the make is also added in the price of the car. E.g. a Mercedes car would be much more expensive than a Vauxhall car even if each and every single part of the car is exactly and identically the same.
DEPRECIATON RATE
FORD CARS.
DEPRECIATION RATE
VAUXHALL CARS.
DEPRECIATION RATE OF BOTH FORD & VAUXHALL CARS.
My graph shows that Ford cars fall in price much faster than the Vauxhall cars. The graph says that as the age gets older, the depreciation rate increases. The Ford cars have a much steeper gradient than the Vauxhall cars. So, the Ford cars fall in price much more rapidly than the Vauxhall cars does.
My graph also shows that on an average a Ford car depreciates all about 30% of its original price in 6 years whereas Vauxhall car depreciates less than 5% of its original price. This means that the Ford cars have a much bigger depreciation rate than the Vauxhall cars.
EVALUATION
I think that age is the main and the biggest influence that affects the price of a second hand car. According to the graphs age, mileage and engine size play an important role behind. I think that insurance also does affect the price of a second hand car but as compared to the other three (age, mileage and engine size) it affects the least.
I think that I would have also compared the colour of the car. I think that the colour of the car also does affect very nicely on the price of the second hand car. Also, on the make of the car. Although I’ve not compared both the colour & the make of the car but I’ve given some examples in between.
While comparing both the Ford cars as well as Vauxhall cars I found out that the Ford cars depreciates its price very quickly as compared to the Vauxhall cars. I could see the major difference between both the cars when I was finding out the depreciation rate of both the makes. If I wanted to buy a second hand car then I would’ve definitely gone for a Vauxhall car.
The predictions that I made in the beginning matched completely with each and every graph while I was comparing both the cars.
In the end I decided to make graphs on cumulative frequency and add box and whiskers that helped me getting better results.
