DriveTime Sedans (case study)
DriveTime in 2001 is an automobile dealership and financing firm with seventy-six dealerships in eight states.
The firm sells and finances about 4,000 used cars and trucks each month.
This case describes DriveTime's business, showing how the time a used car spends on a sales lot relates to profits or losses for the firm.
Case data include vehicle, cost, and sales information for more than 17,000 sedans sold in the second half of 2001. The data are well suited for predictive modeling work using probability models, logistic and Poisson regression, and modern data-adaptive methods. For modeling work, the data are randomly divided into training, validation, and test sets.
Written by Thomas W. Miller and Steve Zemaitis, the case demonstrates the value of using statistical models to guide business decisions.