Question

Which of the following is not a characteristic of Naive forecasting methods?

1) Can serve as an accuracy standard for other techniques
2) Are quick and easy to prepare
3) Are easy for users to understand
4) Able to quickly identify changes in demand
5) Have virtually no cost

Answer 1

Naive forecasting methods do not have the ability to quickly identify changes in demand.

Step-by-step explanation:

Naive forecasting methods have several characteristics, but one of them stands out as not being accurate. The characteristic that is not true of Naive forecasting methods is that they are able to quickly identify changes in demand. While Naive methods are quick and easy to prepare, easy for users to understand, and can serve as an accuracy standard for other techniques, they are not effective at quickly identifying changes in demand.