Using the data below and the Naïve forecast, what is the forecast for the 3rd week?

Question

Week Time Series Value
1 16.00
2 17.00
3 5.00
4 25.00
Answer format: Number: Round to: 0 decimal places.

Answer 1

In a Naïve forecast, the forecast for the next period is simply the value of the most recent period.

Given your data:

• Week 4 has a time series value of 25.00.

Thus, the Naïve forecast for the 3rd week (i.e., the forecast for Week 5) will be:

Forecast for Week 5 = Value for Week 4 = 25.00

Therefore, rounded to 0 decimal places, the forecast for the 3rd week is:

25