Suppose that you are using the naïve forecasting method with trend to forecast sales. Sales have been increasing by 10% per week. Two weeks ago, sales amounted to $100. What should your forecast be for this week?

Suppose that you are using the naïve forecasting method with trend to forecast sales. Sales have been increasing by 10% per week. Two weeks ago, sales amounted to $100. What should your forecast be for this week?



a) $100
b) $ 10
c) $110
d) $121
e) $120


Answer: d) $121

Week 1 = 100 + (100 x .10 = 10)
Week 2 = 110 + (110 x .10 = 11)
Week 3 = 121


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