Naïve forecasting models have no useful applications because they do not take into account data trend, cyclical effects or seasonality.

Question

Quizplus · Accepted Answer

Naïve forecasting models, despite their simplicity and lack of consideration for trends, cyclical effects, or seasonality, can still be useful in certain applications. They serve as a benchmark for more complex models, can be effective in stable environments, or when data is limited.

Naïve Forecasting Models Have No Useful Applications Because They Do