With leading indicators:
A) general time series are used to confirm trends in sales.
B) it is important to find an independent time series that is closely related to company sales.
C) it is difficult to convert changes in a leading indicator into a company sales forecast.
D) you want a series that is available several months in advance of actual company sales.
E) Answers b and d are correct.

Question

Quizplus · Accepted Answer

The best choice for selecting leading indicators is to find an independent time series that is closely related to company sales (choice B), and one that is available several months in advance (choice D). General time series (choice A) may not capture specific trends unique to the company, and it is difficult to directly convert changes in leading indicators into a sales forecast (choice C). Therefore, the best answer is E, with both choices B and D being correct.

With Leading Indicators