Which value does a naïve forecast use to forecast the next period?
A)An average of the last 3 periods
B)An average of the last 7 periods
C)A weighted average of the last 3 periods
D)The previous forecasted value
E)The current actual value

Question

Quizplus · Accepted Answer

A naïve forecast uses the most recent actual value as the forecast for the next period, without any adjustments or calculations based on past data trends.

Which Value Does a Naïve Forecast Use to Forecast the Next