Forecasting with Indices

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Introduction

The purpose of this paper is to discuss forecasting with indices using time series data. A number of economic indicators can be used to predict the future of the economy such as interest rates, the consumer price index, and the cost of fuel. Different indicators will bear different economic results. This paper will depict time series data using three models of the Cadillac: (1) the Deville; (2) the CTS; and (3) the Escalade.

General Motors

General Motors is known as being one of the country’s largest automobile makers. Headquartered in Detroit, Michigan, the automaker is home to Chevrolet, Buick, and Cadillac. The conglomerate has a business reputation in approximately 157 countries worldwide, and employs more than 205,000 people. Cadillac is the platform for making General Motors the automaker industry leader today.

Scatter Chart Results

The attached scatter charts will demonstrate the variations in the successes of these vehicles by creating index projections to forecast trends and future inventory on each of the three models of Cadillac.

Cadillac Deville

Sales for the Cadillac Deville were at their highest in 2004. 2005 and 2006 saw significant drops in sales and continued to drop thereafter. Cadillac then attempted to restyle the Deville however sales still continued to decrease. Cadillac has already attempted to re-vamp the Deville.

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Since this attempt did not result in an increase in sales it is highly likely that sales will continue to decline well into 2010.

Cadillac CTS

This model of the Cadillac gained the interest of consumers. It was marketed as the new luxury crossover sedan by Cadillac. Between the years of 2004-2009 its sales continued to be consistent. This should allow the CTS to have consistent sales throughout 2010.

Cadillac Escalade

Sales ranging...