Which Forecasting Method Assumes That Next Period's Forecast Is Equal

question 11

Multiple Choice

Which forecasting method assumes that next period's forecast is equal to this period's actual value?

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

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Definitions:

Income Statement

A document that showcases a company’s financial performance, specifically its revenue, expenses, and profits or losses, over a particular time period; also known as a profit and loss statement.

Consolidated Financial Statements

Combined financial reports of a parent company and its subsidiaries, presenting the financial position and results of operations as a single entity.

Subsidiaries

Companies that are controlled by another company, known as the parent company.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses have been deducted.