The following table presents data on three leading indicators for a three-month

Question

The following table presents data on three leading indicators for a three-month period. Construct the composite index (with each indicator assigned equal weight) and the diffusion idex.

Month       Leading Indicator A       Leading Indicator B     Leading Indicator C

1                  100                              200                              30

2                   110                             230                               27

3                   120                             240                               33

Explanation / Answer

Month Leading Indicator A Leading Indicator B Leading Indicator C Diffusion Index 1 100 200 30 2 110 230 27 3 120 240 33 Values 1 1 1 30

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