The business analyst for Ace Business Machines, Inc. wants to forecast this year's demand for manual typewriters based on the following historical data:
$$\begin{array} { | c | c | }
\hline \text { Time Periad } & \text { Demand } \
\hline 5 \text { years ago } & 900 \
\hline 4 \text { years ago } & 700 \
\hline 3 \text { years ago } & 600 \
\hline 2 \text { years ago } & 500 \
\hline \text { Last year } & 300 \
\hline
\end{array}$$
What is the forecast for this year using the last-value forecasting method?
A) 163
B) 180
C) 300
D) 467
E) 510

Question

The business analyst for Ace Business Machines, Inc. wants to forecast this year's demand for manual typewriters based on the following historical data:
$$\begin{array} { | c | c | } 
\hline \text { Time Periad } & \text { Demand } \
\hline 5 \text { years ago } & 900 \
\hline 4 \text { years ago } & 700 \
\hline 3 \text { years ago } & 600 \
\hline 2 \text { years ago } & 500 \
\hline \text { Last year } & 300 \
\hline
\end{array}$$
What is the forecast for this year using the last-value forecasting method?
A) 163
B) 180
C) 300
D) 467
E) 510

Quizplus · Accepted Answer

The last-value forecasting method uses the most recent data point to predict the future, which in this case is last year's demand of 300 manual typewriters.

The Business Analyst for Ace Business Machines, Inc What Is the Forecast for This Year Using the Last-Value