Questions: Which forecasting method assumes that next period's forecast is equal to this period's actual value? A) Naive B) Ignorant C) Simple mean D) Nescient E) Basic

Solution Steps

The question is asking which forecasting method assumes that the next period's forecast is equal to this period's actual value. This is a conceptual question rather than a computational one. The correct answer is the "Naive" forecasting method.

The question asks which forecasting method assumes that the next period's forecast is equal to the actual value of the current period. This is a fundamental concept in time series forecasting.

Among the options provided:

• A) Naive
• B) Ignorant
• C) Simple mean
• D) Nescient
• E) Basic

The "Naive" forecasting method is defined as taking the actual value from the current period as the forecast for the next period. Therefore, it is the correct choice.

Final Answer