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If the forecast for the year 2015 is 10000 and that of 2016 is 120000, what would be forecast for the year 2017 according to the naïve forecasting method?

a. 120000
b. 10000
c. 100000
d. 130000

User J Cena
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1 Answer

2 votes

Final answer:

Using the naïve forecasting method, the forecast for the year 2017 would be the same as the last known data point, which is 120,000 for the year 2016.

option a is the correct

Step-by-step explanation:

The student is asking for a forecast for the year 2017 using the naïve forecasting method.

This method assumes that the value in the next time period will be the same as the value in the latest time period. In this case, the forecast for 2016 was 120,000. Therefore, according to the naïve forecasting method, the forecast for 2017 would also be 120,000.

User Grisha Weintraub
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