Business Homework Solutions
Problem
#7490

Forecast demand for units. Would a naive forecast produce better results?

A manager has been using a certain technique to forecast demand for word processing units for the past six periods. Actual and predicted amounts are shown below. Would a naive forecast have produced better results?

Period--------Demand-------Forecast
   1---------------90----------------87
   2---------------85----------------88
   3---------------91----------------87
   4---------------92----------------89
   5---------------95----------------90
   6---------------88----------------92


Solution Summary

The solution discusses several forecasting methods, and draws a conclusion about the viability of a naive forecast.

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