Everest Univ STA 2014-2 Statistics - 2 Week 5 Discussion (2015)

Recognize how probability applies to your daily life.

Suppose you are in the market to purchase a used car. To make an informed decision regarding your purchase, you would like to collect as much information as possible. Among the information you might consider are the typical price of the car, the typical number of miles the car should have, its crash test results, insurance costs, and expected repair costs.

Respond to all of the following prompts:

1. Make a list of at least two cars that you would consider purchasing. To be fair, the cars should be in the same class (such as compact, midsize, and so on) and made in the same year.
2. Collect information regarding the two cars in your list by ?nding at least eight cars of each type that are for sale. Obtain information such as the asking price and the number of miles the car has. Sources of data include your local newspaper, classi?ed ads, and car websites (such aswww.cars.com). Compute summary statistics for asking price, number of miles, and other variables of interest. Summary statistics should include the mean, standard deviation, median, and range. In your main post, present your data, plus the summary statistics for each car.
3. Go to the Insurance Institute for Highway Safety website (www.iihs.org). Select the Vehicle Ratings link. Choose the make and model for each car you are considering. Obtain information regarding crash testing for each car under consideration. Compare cars in the same class. How does each car compare? Is one car you are considering substantially safer than the other? What about repair costs? Compute summary statistics for crash tests and repair costs. Remember summary statistics should include the mean, standard deviation, median, and range.
4. Your best friend is looking into buying a car and happens to be debating between the exact makes and models you have chosen. Which car would you advise your friend to buy? Support your opinion by explaining which has the highest asking price; which has the highest average repair cost; and which has the most consistent asking price (hint: use the standard deviation to answer this).