Suppose a firm has had the historical sales figures shown below. What would be the forecast for next year's sales using the naïve approach?
A) $2,100,000
B) $2,200,000
C) $1,780,000
D) $1,730,000

Question

Suppose a firm has had the historical sales figures shown below. What would be the forecast for next year's sales using the naïve approach? 
A) $2,100,000 
B) $2,200,000 
C) $1,780,000 
D) $1,730,000

Quizplus · Accepted Answer

The naïve approach forecasts future sales by simply assuming that next year's sales will be the same as this year's sales. Therefore, the forecast for next year's sales would be $2,200,000.

Suppose a Firm Has Had the Historical Sales Figures Shown