Math

Linear Regression Activity - Modelling Car Depreciation

Choose a new car (latest model) that you would consider purchasing. As you will be required to

collect data on this car, you must choose a car whose make and model has been on the market for

at least 10 years. Please research the cars currently offered on the market and think about what

type of car would best suit your lifestyle, situation and needs.

The following steps should be recorded on the Linear Regression Activity worksheet:

• State the make and model of your chosen car

• State the MSRP (Manufacturer’s Suggested Retail Price) of your chosen car

• Collect data on the used car value for the make and model of your chosen car over the

past 10 years. (It is recommended that you collect your data from Kelley Blue Book,

http://www.kbb.com. However other reputable sites may be also used. Kelley Blue Book

calls the market price of its cars the “Fair Purchase Price,” but other sites may use a

different term)

• Organize the collected data in a table.

• Prepare a new table that allows you to estimate how the value of the car changes over the

time. This table should have the following two variables: the age of the car in years and

the corresponding market value of the car

• Calculate the linear regression equation modeling your car’s depreciation over time using

your graphing calculator, Desmos or any other software with regression capability

• Graph the linear regression and the scatterplot of your data on your worksheet. You may

also graph it using technology, print the graph and attach it to the worksheet.

• Answer the questions on the worksheet