Suppose that you are using the naïve forecasting method with trend to forecast sales. If sales have been declining by 20% per week, and this week's sales amounted to $200, what would your forecast be for next week?
A) $200
B) $ 40
C) $240
D) $180
E) $160

Question

Suppose that you are using the naïve forecasting method with trend to forecast sales. If sales have been declining by 20% per week, and this week's sales amounted to $200, what would your forecast be for next week?
A) $200
B) $ 40
C) $240 
D) $180
E) $160

Quizplus · Accepted Answer

200 x .20 = 40; 200 - 40 = 160

Suppose That You Are Using the Naïve Forecasting Method with Trend