Suppose a firm has had the historical sales figures shown as follows.What would be the forecast for next year's sales using the naїve approach?

A)$2,450,000
B)$2,900,000
C)$2,350,000
D)$2,585,000

Question

Suppose a firm has had the historical sales figures shown as follows.What would be the forecast for next year's sales using the naїve approach?

A)$2,450,000 
B)$2,900,000 
C)$2,350,000 
D)$2,585,000

Quizplus · Accepted Answer

The naïve approach assumes that the next period's sales will be the same as the most recent period's sales. Thus, the forecast for next year's sales using the naïve approach would be $2,900,000, which is the sales figure for year 4.

Suppose a Firm Has Had the Historical Sales Figures Shown