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Re: st: Creating an index

From   Nick Cox <>
Subject   Re: st: Creating an index
Date   Sun, 13 May 2012 16:20:40 +0100

I don't understand what you have in mind here. If you have a simple
rule to create an "index", then it should be easy to implement it in
Stata. By the way, it seems to me that all methods of summarizing
several variables by one will only work well to the extent that there
is correlation between variables. So any implication that correlation
is somehow a problem or a limitation is completely backwards.


On Sun, May 13, 2012 at 2:03 PM, Ozgur Ozdemir <> wrote:

 I am using Stata 10 and would like to create an index based on 4
variables. However, I do not want to use factor analysis as it implies
that there is correlation between the variables. Is there any way of
creating an index on stata ? Is there any way to create ranges of four
variables such as good, average etc and then assuming that all the
good ones can be called A, then B etc?

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