Text:
O’Sullivan, Elizabethann, Cary R.Rassel and Maureen Bermer. 2008. Research Methods for Public Administrators. Pearson/Longman. ISBN: 13: 978-0-321-43137-0
Read (Chapter 10 of above text): Attached
Under “Questions for Review” on PDF page 11 (page 318 of the text), answer numbers 1, 2, 3
Under “Problems for Homework” on PDF page 12 (page 319 of the text), answer numbers 4, 5, 7
Combining Indicators
Index Con structien
In this chapter you will learn
1. The reasOns fnr using indices.
2. Issues invnlved in the development nf indices.
3. Snme cnmninn methnds nf develnping indices.
4. ‘H.-’avs tn standardize measures fnr use in indices.
5. The uses nf index numbers.
Q dministratnrs nfteti find it useful tn c.nmbine several iiidicatnrs to farm a sin-
gle measure. Fnr example, nne indicatnr is rarel*_v adequate tn measure a
cninmunitv’s need fnr health services, the ainnuiit nf crime in a iieighbnrhnnd, nr
the level ni sanitatinn. Tn measure the health status nf a iieighbnrhnnd, an admin-
istratnr vvnuld svaiit tn use innre than nne iiidicatnr nf a disease nr cnnditinn and
svnuld cnnibiiie several indicatnrs intn a cnnipnsite measure called an index.
Index is a term fnr a set nf variables used as a measure fnr a innre abstract enn-
cept. Each variable is called an item nr iiidicatnr; an index vvill be cnnipnsed nf
tivn -nr ninre items nr iiidicatnrs.
We are all familiar vrith a number ni c.nnimnnlv used indices, suc.h as the
consumer price index (CPI), the Natinnal .e’-”i.ssnc.iati-nn nf ‘Security Dealers i3i.utn-
matic Quntatinns {NASDAQ}, v.rhich traclts stnclt inarltet activity, and stu-
dents’ grade pnint averages (G1“i5..). The cnnsuiner price index is used tn measure
the prices ni gnnds that cnnsuiners purchase. Dbvinushv, the price nf ninre than
nne gnnd must be included tn nbtain an accurate and valid measure. The prices
ni a basket nf representative gnnds are cninbined tn arrive at a value fnr the CPI.
The NASDAQ provides an indicatnr nf the perfnrmaiice nf the stnclt niarltet bv
cnmbiiiiiig a measure cf the perfnrmaiice nf a set nf selected stnclts. Arid we
are all familiar svith the grade pnint average illustrated in Table 10.1. Grades
are assigned a numerical value and ctimbined tn provide a measure nf academic
perfnrinance.
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