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10th March 2005, 03:58 PM
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Member
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Join Date: Jan 1970
Posts: 696
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Indexing Data
Hi,
In another thread I mentioned the Indexing of Data, some packages require this to be done ,as has already been mentioned here. Some of the benefits other than being able to input are as follows,
Indexing allows you to place data on a comparable scale
It will allow you to determine the relative importance of each Index as a predictor.
Allows you to combine Indexes on a weighted basis to create an Overall Ability Indicator (using ROE weights)
The steps in creating an Index are as follows; you need to determine which way is up? with this data is the HIGHER the number is, the better it is, and it should therefore have a Higher Index number.
For each Factor you will need to either find the Maximum number or Minimum number benchmark that the other data will be compared to or use the Max an Min. within the data.Now depending on "which way is up"
Using Time as an example so the smaller the number the higher the score
Using 3 runners runner a) 34.06 slowest runner and Max, runner b) 31.06, runner c)30.06 min data.
We will find the Index score for runner B)
Step 1 subtract runner b from Max value 34.06 -31.06 = 3sec
Step 2 divide step 1 result by the range of data (34.06 - 30.06=4 sec)
3sec divided by 4 sec =.75
Step 3 Multiply result of Step 2 by 40 (our index will have a min score of 100-60) .75 Times 40 = 30
Step 4 Add the result of Step 3 to 60 (our index will have a min score of 100 -40) , 30 plus 60 =90
so the the above runners A) will score 60 B) 90 and C) 100.
Just reverse the base numbers depending on "which way is up".
Hope this helps you organise your data
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