I'm not sure whether this question has been already discussed or not. How do we choose the base year for vehicle stock turnover modeling? Should we choose the latest year with available data or some years in the past (e.g., 5 or 10 years ago) to see how vehicle sales and vehicle stock change?

I don't think there is a right or wrong answer to that. It depends on what you are trying to achieve with your modeling. If you want to be able to show to your stakeholders that your model can reproduce recent past historical tends then the latter approach would be good, but obviously its more work for you - more data to manage and more model calibration required I should think.

Hope that helps!

Charlie

Thanks so much for your kind feedback and explanation. It is clear to me now.

Regards,

Atit