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A composite index is a statistical measure designed to represent a complex phenomenon by combining two or more individual indicators into a single numerical value. In research methodology, many social, economic, demographic and developmental concepts cannot be measured adequately through one variable. For example, human development depends on education, health and income. Similarly, poverty, quality of life, socio-economic status and industrial development are multidimensional concepts. A composite index combines relevant indicators so that the overall condition of a unit, such as an individual, household, district, state or country, can be assessed and compared. The construction of a composite index generally involves several stages. First, the researcher clearly defines the concept to be measured and identifies suitable indicators. The indicators should be theoretically relevant, measurable, reliable and capable of representing different dimensions of the phenomenon. Second, the data are collected and transformed _______ ______ ___ _________ ________ ________.
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