Question

met as the average work honey supply. This 11. The index of leading economic indicators, compiled and published by the U.S. Bureau of Economic Research, is composed of 12 time series, such as the avera hours of production in manufacturing, manufacturers' new orders, and money sup index and similar indexes are designed to move up or down before the economy move the same way. Thus, an economist has statistical evidence to forecast You want to construct a leading indicator for Erie County in upstate Ne index is to be based on 2000 data. Because of the time and work involved, yo use only four time series. As an experiment, you select these four series: unen the county, a composite index of county stock prices, the County Price Index sales. Here are the figures for 2000 and 2014. e to forecast future trends ity in upstate New York. The k involved, you decide to os: unemployment in ce Index, and retai 2000 2014 6.8 Unemployment rate (percent) Composite county stocks County Price Index (1982-100) Retail sales ($ millions) 362.26 5.3 265.88 109.6 529,917.0 125.0 622,864.0

Answer 1

a)

The total production in 2013 = 9000 + 200+ 5000 = 14,200

The total production in 2001 = 10,000 + 600 + 3000 = 13, 600

Index of production = Production in current year * 100 / Production in base year = 14200*100/13600 = 104.41

b) Interpreting the Index of production " The production level increased by 4.41 % in 2013 compared to 2001"