Table 14.5
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been:
-Use the information from Table 14.5.If a naive forecast were constructed,the forecast for week 7 would be:
A)53 pizzas.
B)55 pizzas.
C)56 pizzas.
D)60 pizzas.

Question

Table 14.5
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.Recent demand has been: 
-Use the information from Table 14.5.If a naive forecast were constructed,the forecast for week 7 would be:
A)53 pizzas. 
B)55 pizzas. 
C)56 pizzas. 
D)60 pizzas.

Quizplus · Accepted Answer

A naive forecast assumes that the next period's demand will be equal to the most recent period's demand. Therefore, the forecast for week 7 would be 60 pizzas, which was the demand in week 6.

Table 14.5 The Manager of a Pizza Shop Must Forecast Weekly Demand