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Presented by: Alex Kelson , Ben Sparks, Drew Walsh, Oyebola Akinmulero , Shaghayegh Tareh , Tim Pearson, Tina Tran. Statistical Analysis. Is there a correlation between the miles on a used Toyota Corolla LE and the asking price at a used car dealership?
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Presented by:Alex Kelson, Ben Sparks, Drew Walsh,OyebolaAkinmulero, ShaghayeghTareh,Tim Pearson, Tina Tran
Statistical Analysis Is there a correlation between the miles on a used Toyota Corolla LE and the asking price at a used car dealership? We believe that there is a linear correlation where more miles that a used Toyota Corolla LE has the lower the sticker or asking price will be at the used car dealership.
Data on Toyota Corolla LE All information acquired from cars.com
Best Fit Line and Correlation Coefficient Y=-0.859x +18450 R=.8615683374 PR I CE MILES
Observed Y and Residual Predicted Y vs. X PRICE MILES Residual vs. X PR I CE MILES
Linear Model Assumption Due to the fact that there is a linear correlation using the best fit line model we have met the criteria for section A on #7 Since there was no discernible pattern in the plot of “Residual vs X” (found on page 7), the data is linearly related. Since we have used 30 points in our data set and our correlation coefficient or R =.8615 this is much higher than the required .361 we have found a strong positive correlation. We have concluded that using the data from cars.com, a strong correlation between the miles on a used vehicle will lower the sticker/asking price of a Toyota Corolla LE.
Predictions Using Equation Y=-0.859x +18450 Predicted using Equation
After Thought • Did you just do a convenience or voluntary-response sampling to collect your data? The sampling data was convenience based. We found it through an internet search. • Did your study suffer from too few data points? We don’t believe the study suffered from too few data points, it points out clearly that car value decreases with increased mileage. • Are you misrepresenting the data? No we are not misrepresenting the data. • Is your analysis correct? The analysis is correct. • Does your conclusion make sense? Yes our conclusion makes sense. • We think that the study was useful for our reader. However, it is pretty common sense. We think it would have been helpful to research a variety of cars and compare them. Some examples of variety would be upgraded vehicles compared to the stock vehicle; or compare different types of vehicles and their value with mileage. This could influence the reader’s decision between cars and upgrades depending on the resale value.
Sources • All statistical data was acquired using the Cars.com search engine for “Used Toyota Corolla LE” search grid within 10 miles of 84070 accessed on 11/14/11