## Question 1 | Naive Forecasting Method, MAE, MAPE (Preview)

The Naive forecast is an extremely simple approach to forecasting future values from a set of observations – you just use the previous time period’s observation to obtain the forecast for the next period. Using a past exam question I cover the method in this question and measure its accuracy using forecast errors, the Mean Absolute Error (MAE), and the Mean Absolute Percent Error (MAPE).