Investigating Which Factors Affect the Price of a Used Car

1034 Words3 Pages

Investigating Which Factors Affect the Price of a Used Car

Introduction:

I have been given a database which contains information about one

hundred different used cars. We are investigating what is the most

influential factor when buying a second hand car. The factors which I

will be using are the age and mileage of the cars to see how they

affect the price.

Hypothesis:

Cars which are older and have got more mileage are generally cheaper,

but if I have a vintage (antique) car it will change my graph so it

would skew my data as an outlier. Also some cars will depreciate

quicker than others in their first year.

Plan:

Using the data which has been given to me I will compare age to

mileage on a scatter graph with price. If I did the investigation by

hand I would have chosen a sample of 100 cars of about 20 being picked

at random using every 5th car as a sample and picking where to start

counting at random by putting the numbers lets say the numbers 1-5 in

a hat and pulling one out at random, But however I have been given the

data on excel. By doing the charts on excel I will be able to plot all

the data on the scatter graph and then draw a line of best fit

(trendline) more easily and then compare between age and mileage

because the computer can generate a graph much quicker than if done by

hand. This will show me what sort of correlation the graph has,

whether positive or negative and how strong it is and also become

apparent with the line of best fit. If my investigation goes well, my

hypothesis should be correct and should expect some outliers. On excel

I would eliminate the outlier if I need to get a better line of best

fit. Also I can use specific makes of cars to compare how quickly the

car price decreases. When I have completed the graph containing all

the cars I will draw graphs containing specified data specific to

More about Investigating Which Factors Affect the Price of a Used Car

Open Document