ACCOUNTING
Scenario Analysis Cars Sold

Scenario Analysis Cars Sold - Running head Scenario...

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Running head: Scenario Analysis: Cars Sold 1 Scenario Analysis: Module 4 Cars Sold Statistics 510 Brandy Walker January 17, 2016 Dr. C.
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Scenario Analysis: Cars Sold 2 Abstract In this module we are asked to evaluate the correlation between the number of cars sold and the interest rate at a car dealership. We will evaluate the data given as well as perform our own data charts to see if there really is a relationship between the number of cars being sold and the interest rate.
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Scenario Analysis: Cars Sold 3 Cars Sold A finance manager at a car dealership believes that there is a relationship between the number of cars sold and the interest rate charged for the loan. In this analysis we will evaluate the data given and see if this is really the case. Factors to consider. We will begin this scenario by evaluating the main elements of the data given. The finance manager is simply basing this relationship off of the idea that if interest rate continues to climb that cars being sold will drop. I think this makes sense for this particular analysis. There are several other items we could bring into place such as what are interest rates at this dealership compared to others. But for this scenario I believe we have what we need. I think it is safe to assume that these percentage rates are based on the going rate in the area. As you can see there is a relationship between the interest rate and cars being sold. Interest rate reasoning and 7%. I think when predicting future car sales the other idea to think about is unemployment rate. This does not have to be a bad thing either. The article Rising Unemployment Rate Not a Bad Sign for New Car Sales by Lacey Plache explains what a rising unemployment rate means for car sales. “
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