The simplest approach to estimating a future period's sales is to assume that they will be equal to those of the latest observed period. In statistics, this is often simply referred to as which of the following?
A)Base case approach
B)Deseaonalized approach
C)Naïve approach
D)Pro forma approach

Question

Quizplus · Accepted Answer

The method of assuming that future period's sales will be equal to those of the latest observed period is referred to as the Naïve approach, also known as the "no-change" or "random walk" approach. It is the simplest approach and assumes that there are no trends, seasonal variation, or other factors that might affect sales.

The Simplest Approach to Estimating a Future Period's Sales Is