Theory of Whether The Age of a Car Is Directly Proportional To It's Depreciation
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Hypothesis 1 Age of Car I shall now be trying to prove whether the age of the car is directly proportional to the depreciation. To test this theory I shall be using a cluster sample. I decided to use the Ford Cars sample because it has a range of cars from the age of 1 - 8 and this may help to get the information more accurate. I shall also be using a sample of Fiat cars to see if my answer is conclusive. Ford Cars Age (Years) Price when new Price Now Price lost % Loss 1 £16,000 £7,999 £8,001 50% 2 £14,505 £8,800 £5,705 39% 3 £13,230 £8,250 £4,980 38% 4 £17,780 £7,995 £9,785 55% 5 £15,405 £3,995 £11,410 74% 6 £9,995 £2,995 £7,000 70% 7 £13,183 £3,495 £9,688 73% 8 £7,310 £1,050 £6,260 86% Fiat Cars Age (Years) Price when new Price Now Price lost % Loss 1 £10,954 £6,795 £4,159 38% 2 £10,810 £4,995 £5,815 54% 3 £7,864 £4,500 £3,364 43% 4 £8,601 £3,995 £4,606 54% 5 £10,351 £3,495 £6,856 66% 6 £10,423 £1,295 £9,128 88% 7 £8,272 £1,500 £6,772 82% 8 £6,864 £1,495 £5,369 78% To find out the percentage loss of a car I used the formula below: I then transferred the data from the tables and then added it to the scatter diagrams. This scatter diagram displays the information on the Ford Cars table. This scatter diagram displays the information on the Fiat Cars table. Both scatter diagrams above show a positive...


