Are problems arisen because sales of such goods subject to extreme variations?

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Making accurate business forecasts is most difficult for companies that produce durable goods such as automobiles or appliances, as well as for companies that supply the basic materials to these industries. Problems arise because sales of such goods are subject to extreme variations. During the early 1970s, annual sales of automobiles in the United States increased by 22 percent in one year and declined by 22.5 percent in another. Consequently, the durable goods industries in general, and automobile companies in particular, have developed especially complex and sophisticated forecasting techniques. In addition to careful analysis of income trends (based on a general economic forecast), automobile companies, which are acutely sensitive to competition from imports, underwrite a number of studies of consumer attitudes and surveys of intentions to purchase automobiles.