In using __________, the analyst estimates trends from past data and adds this figure to current sales to obtain a forecast.
A) the naïve approach
B) the trend projection approach
C) exponential smoothing
D) the moving average approach
E) none of the above

Question

Quizplus · Accepted Answer

The trend projection approach is the method where the analyst estimates trends from past data and adds this figure to current sales to obtain a forecast. The other methods listed do not involve estimating trends from past data. The naïve approach involves using the most recent period's data as the forecast, exponential smoothing involves giving more weight to recent data than to past data, and the moving average approach involves using an average of a fixed number of past periods' data as the forecast.

In Using __________, the Analyst Estimates Trends from Past Data