The following table presents data on three leading indicators for a three-month period. Construct the diffusion index from month 2 to 3. This problem, we have three leading indicators. The diffusion index from month 1 to 2 is 66.7 (=2/3) because two indicators move up and one moves down .
|
Month
|
Leading Indicator A
|
Leading Indicator B
|
Leading Indicator C
|
|
1
|
100
|
200
|
30
|
|
2
|
110
|
230
|
27
|
|
3
|
120
|
240
|
33
|