The Percentage Decrase in Price of a Car and Its Mileage
Aim
To find out if the mileage that a car has run is related in any way to
the percentage decrease in the price of the car from original price to
secondhand price.
This would be worthwhile doing as the mileage directly affects the
quality of the car and so, affects the price.
I will do a pretest (graph of everything) to ensure that the
investigation is worth doing, just to see if there is an overall
correlation.
Method
I will pick out the data I need for this project and take samples.
Here I will need the statistics of mileage and both prices then use
the spread sheet to work out the price decrease percentage.
I will test them for any relation they may have and draw scatter
diagrams.
The scatter diagrams would have lines of best fit.
A cumulative frequency table may also be useful in finding the
relations.
l Data
The information I need to collect are the prices and the mileage.
These are available in the excel spreadsheet from the KGV math site
and I will be working form this. The spread sheet is reliable as it is
provided for us. It contains a sample of 100 cars.
I will take three samples of 10 using stratified sampling (taking a
few from each 10) and leaving out the extremes from both ends. This
will give a fair sample as all the different percentages are taken
into account.
The samples will be compared to each other to find if there is a
correlation.
I will also find the correlation coefficient using the formulas:
∑ x;y - ∑x; ∑y ∑ x2 - (∑x;)2 ∑y;2 - (∑y;) 2
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Prediction
I think that there will be a strong positive correlation as usually,
the price drops by a greater percentage as the mileage increases.
Hypothesis
I think that this will be true as older cars get sold for less money.
The simple car that was easy to fix with some simple tools have now become as complex as a supercomputer on wheels. Most people today have decided that automobiles of today are too complicated and just send their cars to a professional for repairs. As of January 2013, the average age of a vehicle operating on the roads today is 11.4 years old. (Associated Press, 2013). People are holding on to their cars a lot longer than in the past. Although, some claim that it is because today’s cars last longer. There is no doubt that today’s economy is also playing a part in the public’s reluctance to part with their older vehicles. However, cars will always need repairs.
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