The Index of Leading Indicators Has

question 135

Multiple Choice

The index of leading indicators has

• A)turned down prior to six of the eight recessions since 1959.
• B)turned up prior to each of the periods of inflation since 1959.
• C)turned down prior to each of the eight recessions since 1959,but it has also falsely forecast several others.
• D)turned down only eight times since 1959,and each downturn has been followed by a recession.

---

Definitions:

T-Statistic

A value derived from sample data that is used in a t-test to determine if there is a significant difference between two groups.

Coefficient on Income

A numerical measure, often used in regression analysis, that represents the change in an outcome variable associated with a one-unit change in income.

Significantly Different

Used to describe when two or more sets of data are proven to be different beyond random chance, often determined through statistical testing.

F-Statistic

A ratio of two variances used in the analysis of variance to assess whether the means of different groups are equal.