When a trucking firm uses the number of shipments for January of the previous year as the forecast for January next year, it is using a naïve forecasting model.

Question

Quizplus · Accepted Answer

A naïve forecasting model bases future predictions solely on past data, without adjusting for other factors or trends, so using last year's shipments to predict this year's is an example of this approach.

When a Trucking Firm Uses the Number of Shipments for January