Question

A firm has the following sales figures: Year 2011: $2.1 million. Year 2012: $2.3 million. Year 2013 $2.5 million. Year 2014 $2.2 million. Year 2015 $3.1 million. Using the naive approach, determine the forecast for next year's sales. A. $3.2 million. B. $3.1 million. C. $3.4 million. D. $2.5 million

Answer 1

3.1 million

Step-by-step explanation:

naive approach assumes that your projected data point is just your most recent one

because we have 3.1 million last year we assume that it's going to be that this year