When forecasting sales for a particular product, all of the following are possible leading indicators except:
A) new building permits.
B) historical data for that product.
C) Dow Jones industrial average.
D) new orders for durable goods.
E) all of the above are leading indicators.

Question

Quizplus · Accepted Answer

Historical data for that product is not a leading indicator; it is a lagging indicator because it reflects past sales performance rather than predicting future trends. Leading indicators are variables that predict future trends, such as new building permits, the Dow Jones industrial average, and new orders for durable goods.

When Forecasting Sales for a Particular Product, All of the Following