Disadvantages of naive forecasts include:
A)time-consuming to prepare
B)it is expensive to use
C)the technique is difficult to understand
D)inability to provide highly accurate forecasts
E)time to develop a forecast is lengthy

Question

Quizplus · Accepted Answer

Naive forecasts do not take into account any influencing factors or trends and simply rely on historical data. Therefore, they cannot provide highly accurate forecasts.

Disadvantages of Naive Forecasts Include