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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
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