A large car fleet 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 profits; understanding what affects resale values may

allow leasing and sales policies to be developed in order to maximize

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.

Two questions

1-List the possible predictor variables that might be useful, assuming that

the relevant data is available.?

2- Describe the five steps of forecasting in the context of this project.?