Investigating the Factors that Determine the Price of a Second Hand Car

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Investigating the Factors that Determine the Price of a Second Hand Car

Aim

Use the information to investigate what influences the price of a

second hand car.

Introduction

I’m going to find out what it is that affects the price of a second

hand car.

Hypothesis

I think that the main factors in the drop of car prices are the age

and mileage; this is because they give us a good indication as to what

the cars price and other information could be.

Plan

I am going to prove this by making scatter graphs which compare the

age and mileage with the second hand price. I have decided to only use

3 car makes, this is because there is 100 different cars with lots of

irrelevant information. Therefore I will use Ford, Vauxhall and Rover

because these are the most popular makes in the database. The data I

am goin to use is the price when new, second hand price, age, mileage

and finally I am going to work out the difference between the price

when new and second hand price.

Scatter Graphs

I have decided to do scatter graphs instead of different graphs

because of the line of best fit. Using line of best fit means I can

predict other information on cars where I havent been given all the

information.

Ford Cars

Price when

Price

Age

Mileage

Difference

% Depreciation

New

Second Hand

16000

7999

1

7000

8001

50.00625

8785

1595

7

68000

7190

81.84405236

7310

1050

8

90000

6260

85.63611491

7875

1495

11

74000

6380

81.01587302

8748

1995

7

60000

6753

77.19478738

9105

2300

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