A large car fleet company asked you to help them forecast vehicle resale values. They purchase new vehicles, lease them for three years, and then sell them. Better forecasts of vehicle sales values would mean better control of profits; understanding what affects resale values may allow leasing and sales policies to be developed to maximise profits. At the time, the resale values were being forecast by a group of specialists. Unfortunately, they saw any statistical model as a threat to their jobs and were uncooperative in providing
A large car fleet company asked you to help them forecast vehicle resale values. They purchase new vehicles,
lease them for three years, and then sell them. Better forecasts of vehicle sales values would mean better
control of profits; understanding what affects resale values may allow leasing and sales policies to be
developed to maximise profits. At the time, the resale values were being forecast by a group of specialists. Unfortunately, they saw any statistical model as a threat to their jobs and were uncooperative in providing information. Nevertheless, the company provided a large amount of data on previous vehicles and their eventual resale values.
1.1 Describe the five steps of forecasting in the context of this project?
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