See the image below
Work Step by Step
To graph the following function, we will first determine its parent function and then stretch the whole graph step by step. The parent function of $y=|x|-2$ is $y= x$ (Black dotted line graph in the image). Now, lets transform it a little and graph $y=|x|$, which means to reflect the portion of the graph below $x$-axis about the $x$-axis (Red line graph in the image) Finally, we graph $y=|x|-2$, which means that we have to shift the previous graph downwards by 2 units (Blue line graph in the image).