Aliyah Edwards is employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. Aliyah decides that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2010 and 2022.

a. Compute the leading economic indicator for 2022.b. Interpret the indexes.

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New businesses Business failures State income tax receipts ($ millions) College student enrollment State sales tax ($ millions) Weights .15 .10 .40 .10 25 2010 1,088 627 191.7 242,119 41.6 2022 1,162 520 162.6 290,841 39.9