How would you reveal the usefulness of naive forecasts-01171
This subjective question is related to the book/course
vu edu305 Classroom Management.
It can also be found in
vu edu305 Mid Term Solved Past Paper No. 1.
Question 1: How would you reveal the usefulness of naive forecasts?
Answer:
Naïve forecasting makes simple assumptions about the future at its simplest, naïve forecasting assume that the future level of demand will be same as the current level.
Naive Forecasts:
- Simple to use
- Virtually no cost
- Quick and easy to prepare
- Data analysis is nonexistent
- Easily understandable
