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Leading and Lagging Indicators

Leading and Lagging Indicators. Leading Indicators. Definition: An indicator that predicts future events and tend to change ahead of that event. Sometimes used as a predictor.

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Leading and Lagging Indicators

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  1. Leading and Lagging Indicators

  2. Leading Indicators • Definition: An indicator that predicts future events and tend to change ahead of that event. Sometimes used as a predictor. • The Federal government watches unemployment rate, money supply, production, etc. (all leading indicators), to decide what to do about the interest rates. • There is a link between the rate of hand washing (leading) and infections (lagging). • VCH monitors children with lesions, spider bites, cellulitis in children since these often predict MRSA. • Leading health indicators are: physical activity, weight, tobacco use, substance abuse, mental health, immunizations, etc.These tell us the health of our nation.

  3. Lagging Indicators • Definition: An indicator that follows an event. • Previous example of infections (lagging) caused by hand washing rate (leading). • Unemployment rate (lagging) indicates that the economy has been doing poorly. • Patients with ventilator acquired pneumonia signifies that we may not have done followed the necessary precautions for the patients. • Financial statements are lagging indicators. The show the result of spending.

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