7 The weights you assign are unemployment rate 20%, stock prices 40%, County Price Index 25%, and retail sales 15%. (Round youranswers to 1 decimal place.)a. Using 2000 as the base period, construct a leading economic indicator for 2018.Leading economic indicatorb. Interpret your leading index.Business activity increasedpercent from 2000 to 2018. The index of leading economic indicators, compiled and published by the U.S. National Bureau of Economic Research, is composed of12 time series, such as the average work hours of production in manufacturing, manufacturers' new orders, and money supply. Thisindex and similar indexes are designed to move up or down before the economy begins to move the same way. Thus, an economisthas statistical evidence to forecast future trends.You want to construct a leading indicator for Erie County in upstate New York. The index is to be based on 2000 data. Because of thetime and work involved, you decide to use only four time series. As an experiment, you select these four series: unemployment in thecounty, a composite index of county stock prices, the County Price Index, and retail sales. Here are the figures for 2000 and 2018.20002018Unemployment rate (percent)Composite county stocksCounty Price Index (1982 = 100)Retail sales ($ millions)5.36.8265.88362.26109.6125.0529, 917.0622,864.0E Click here for the Excel Data FileThe weights you assign are unemployment rate 20%, stock prices 40%, County Price Index 25%, and retail sales 15%. (Round youranswers to 1 decimal place.)a. Using 2000 as the base period, construct a leading economic indicator for 2018.Leading economic indicator

Name: 7 The weights you assign are unemployment rate 20%, stock prices 40%,
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: 7 The weights you assign are unemployment rate 20%, stock prices 40%, County Price Index 25%, and retail sales 15%. (Round youranswers to 1 decimal place.)a. Using 2000 as the base period, construct a leading economic indicator for 2018.Leading econo