The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand for the one new tanning booth based on the following historical data: Month Number of Visits April 100 May 140 June 110 July 150 August 120 September 160 What is this month's forecast using the naive approach?

Practical Management Science
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Chapter2: Introduction To Spreadsheet Modeling
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The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand for the one new tanning booth based on the following historical data:
 

Month Number of Visits
April 100
May 140
June 110
July 150
August 120
September 160

  
What is this month's forecast using the naive approach?

Multiple Choice
O
O
O
100
120
130
140
160
Transcribed Image Text:Multiple Choice O O O 100 120 130 140 160
Expert Solution
Step 1

In the Naive method last period’s actual sales are used as the forecast of this period. It is more useful for comparison.

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