Case 3 A large car eet company asked us to help them forecast vehicle re-sale values. They purchase new vehicles, lease them out for three years, and then sell them. Better forecasts of vehicle sales...

Case 3

A large car eet company asked us to help them forecast vehicle re-sale values. They purchase new vehicles, lease them out for three years, and then sell them. Better forecasts of vehicle sales values would mean better control of prots; understanding what aects resale values may allow leasing and sales policies to be developed in order to maximise prots.

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.