Final answer:
Using the naive forecasting method, this year's forecast for DVD decoders is predicted to be the same as the last year's sales, which is 300 units. This approach is based on the trend in the historical data without adjusting for any external market factors.
Step-by-step explanation:
The question seeks to apply the naive forecasting method to predict this year's demand for DVD decoders based on the historical data provided for Video Sales, Inc. Under the naive approach, the forecast for the current period is equal to the actual value of the last period. The data shows a declining trend over the past five years: 900 units five years ago, reducing steadily to 300 units last year. Therefore, following the naive method, this year's forecast for DVD decoders will be the same as last year's sales, which is 300 units.
This assumes no changes in external factors and continues the pattern of the historical sales figures. However, it is important to recognize that this method does not account for other potential influencing factors, such as technological advancements, market saturation, or the shift to alternative technologies like streaming services. It's pure reliance on historical sales data could lead to inaccurate predictions if the market dynamics have changed significantly.