Using the latest observation in a sequence of data to forecast the next period is:
A) a moving average forecast.
B) a naive forecast.
C) an exponentially smoothed forecast.
D) an associative forecast.
E) regression analysis.

Question

Using the latest observation in a sequence of data to forecast the next period is:
A) a moving average forecast.
B) a naive forecast.
C) an exponentially smoothed forecast.
D) an associative forecast.
E) regression analysis.

Quizplus · Accepted Answer

Using the latest observation in a sequence of data to forecast the next period is known as a naive forecast. This method assumes that the future will be the same as the most recent period, without considering any other factors or trends.

Using the Latest Observation in a Sequence of Data to Forecast