Which time-series model below assumes that demand in the next period will be equal to the most recent period's demand?
A)naïve approach
B)moving average approach
C)weighted moving average approach
D)exponential smoothing approach
E)trend projection

Question

Quizplus · Accepted Answer

The naïve approach, also known as the random walk model, assumes that the demand in the next period will be equal to the most recent period's demand. This model is useful when there is no trend or seasonality in the data, and it serves as a baseline to compare other forecasting methods.

Which Time-Series Model Below Assumes That Demand in the Next