Question

Problem 15-2 Naive Sales Forecast (LG15-3) Suppose a firm has had the following historic sales figures. Year: Sales 2012 $3,700,000 2013 $4,950,000 2014 $3,600,000 2015 $3,200,000 2016 $3,500,000 What would be the forecast for next year's sales using the naive approach? Next year's sales Sybe here to search W F R T Y U I O P s o F C H ] K L

Answer 1

According to Naive Method, Forecast for the next period will be the actual value for the current period

Forecast for next period = Actual Value of the current Period

Year	Actual Sales	As Per Naïve Forecast
2012	37,00,000
2013	49,50,000	37,00,000
2014	36,00,000	49,50,000
2015	32,00,000	36,00,000
2016	38,00,000	32,00,000
2017		38,00,000

So the Sales for 2017 As per Naive Approach would be $ 3800000