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Problem 15-2 Naive Sales Forecast (LG15-3) Suppose a firm has had the following historic sales figures. Year: Sales 2012 $3,7
Problem 15-2 Naive Sales Forecast (LG15-3) Suppose a firm has had the following historic sales figures. Year: Sales 2012 $3,7
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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

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