Question

Dell uses the CR5 chip in some of its laptop computers. The prices for the chip during the past 6 months were as follows:

Month Price per Chip
1 1.78
2 1.67
3 1.70
4 1.75
5 1.70
6 1.67

Use naïve forecast to forecast the price per chip from month 2 to month 6

Answer 1

Naive forecast from second to sixth month is given as below:

Step-by-step explanation:

Month Price per chip Forecast (naïve)

2nd month:

Price per chip=1.67

Forecast (naïve)= 1.78

3rd month:

Price per chip=1.70

Forecast (naïve) =1.67

4th month:

Price per chip=1.75

Forecast (naïve) =1.70

5th month:

Price per chip=1.70

Forecast (naïve)= 1.75

6th month:

Price per chip=1.67

Forecast (naïve)= 1.70