Question

The following table summarizes the sale of cars per month. Determine the forecast for the month of July using the NAIVE Approach.

Month Sales
February 12
March 12
April 16
May 1 8
June 17

Answer 1

Using the NAIVE approach, the forecast for July would be the same as the June sales, which is 17 cars, as this method assumes stable conditions from the past month will persist.

Step-by-step explanation:

To forecast sales for the month of July using the NAIVE approach, we simply take the sales figures from the most recent month, which is June, and use that number. The sales figure for June is 17 cars, so the naive forecast for July would also be 17 cars. This approach assumes that the conditions affecting sales in June will continue through July without any changes.