The _______ method uses demand in the first period to forecast demand in the next period.
A)naïve
B)moving average
C)exponential smoothing.
D)linear trend

Question

Quizplus · Accepted Answer

The naïve method assumes that demand in the next period will be the same as demand in the current period. It is the simplest forecasting method and is best used when there is no trend or seasonality in the data. Therefore, it is the most appropriate method for using the demand in the first period to forecast demand in the next period. The moving average and exponential smoothing methods would use historical demand data from multiple periods, while the linear trend method assumes a linear relationship between time and demand, which may not be appropriate for all situations.

The _______ Method Uses Demand in the First Period to Forecast