An operation analyst is forecasting this year's demand for one of his company's products based on the following historical data:
$$\begin{array} { | c | c | }
\hline \text { Year } & \text { \# Sald } \
\hline 4 \text { years ago } & 10,000 \
\hline 3 \text { years ago } & 12,000 \
\hline \text { 2 years ago } & 18,000 \
\hline \text { Last year } & 20,000 \
\hline
\end{array}$$
What is the forecast for this year using the last-value forecasting method?
A) 22,000
B) 20,000
C) 18,000
D) 15,000
E) 12,000

Question

An operation analyst is forecasting this year's demand for one of his company's products based on the following historical data:
$$\begin{array} { | c | c | } 
\hline \text { Year } & \text { \# Sald } \
\hline 4 \text { years ago } & 10,000 \
\hline 3 \text { years ago } & 12,000 \
\hline \text { 2 years ago } & 18,000 \
\hline \text { Last year } & 20,000 \
\hline
\end{array}$$
What is the forecast for this year using the last-value forecasting method?
A) 22,000
B) 20,000
C) 18,000
D) 15,000
E) 12,000

Quizplus · Accepted Answer

The last-value forecasting method uses the most recent data point to predict the future, which in this case is 20,000 units sold last year.

An Operation Analyst Is Forecasting This Year's Demand for One