You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. New businesses Business failures State income tax receipts ($ millions) College student enrollment State sales tax ($ millions) 2000 1,088 627 191.7 242,119 41.6 Leading economic indicator 2018 1,162 520 162.6 290,841 39.9 Click here for the Excel Data File The weights you assign are: new businesses 15%, business failures 10%, income tax 40%, enrollment 10% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.)

You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. New businesses Business failures State income tax receipts ($ millions) College student enrollment State sales tax ($ millions) 2000 1,088 627 191.7 242,119 41.6 Leading economic indicator 2018 1,162 520 162.6 290,841 39.9 Click here for the Excel Data File The weights you assign are: new businesses 15%, business failures 10%, income tax 40%, enrollment 10% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past
economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the
index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment,
and the state sales tax receipts. Here are the data for 2000 and 2018.
New businesses
Business failures
State income tax receipts ($ millions)
College student enrollment
State sales tax ($ millions)
Click here for the Excel Data File
Leading economic indicator
2000
1,088
Economic activity has
627
191.7
increased
decreased
242,119
41.6
c. Interpret the indexes. (Round your answer to 2 decimal places.)
2018
1,162
The weights you assign are: new businesses 15%, business failures 10%, income tax 40%, enrollment 10% and sales tax 25%.
b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.)
520
162.6
290,841
39.9
% between 2000 and the 2018.

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