Tiffany was founded in 1837, when Charles Lewis Tiffany opened his first store in downtown Manhattan. Tiffany retails and distributes a selection of Tiffany & Co. brand jewelry at a range of prices. Today, more than 150 Tiffany & Co. stores sell to customers in U. S. and international markets. In addition to jewelry, it sells Tiffany & Co. brand merchandise in the following categories: timepieces and clocks; sterling silver merchandise; stainless steel flatware; crystal, glassware, china, and other tableware; custom engraved stationery; writing instruments; and fashion accessories. Fragrance products are sold under the trademarks Tiffany, Pure Tiffany, and Tiffany for Men. Tiffany also sells other brands of timepieces and tableware in its U. S. stores.

Tiffany€™s quarterly sales from 2005 to the start of 2013 are in the file Tiffany 2013. They are shown here.

Build alternative time series models for Tiffany€™s sales and forecast future sales. In addition, develop multiple regression models to forecast Tiffany€™s sales by using economic data, such as gross domestic product (GDP), consumer price index (CPI), disposable income, unemployment, and interest rates over this same time period. These economic data are also provided in the data file. Given that Tiffany is known for its high- end quality and price, it was of interest for the corporate executives to see how sensitive Tiffany sales were to economic indicators. Develop a hypothesis before developing your models. Compare your models and recommend a model for the executives at Tiffany to use for fore-casting their quarterly sales.

Transcribed Image Text:

e 1200000+ 1000000 800000 600000 2008 2010 2012 Year