Naive Forecasting

Naive forecasting is a simple method used to predict future data based on the most recent observed value. For example, if sales were 100 units last month, the naive forecast for the next month would also be 100 units. It assumes that future values will stay the same as the last observed value without considering any trends or seasonal patterns. This approach is easy to apply and can work reasonably well for stable data, but it may not be accurate if the data is changing or influenced by other factors.