Using a naive forecasting method, the forecast for next month's sales volume equals
A) the most recent month's forecast.
B) the most recent month's sales volume.
C) the average of the last four month's sales volumes.
D) next month's production volume.

Question

Quizplus · Accepted Answer

Naive forecasting method assumes that the next period's forecast is equal to the most recent period's actual result. Therefore, the best choice is B, which is the most recent month's sales volume.

Using a Naive Forecasting Method, the Forecast for Next Month's