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Calculate the index by dividing the current-year result of 0.687 by the previous year result of 0.667 to yield an index of 1.032. Divide sales for the later period by sales for the earlier period to calculate the sales growth index. In the example, divide $80,000 by $60,000 to obtain a sales growth index of 1.333.
The first step in creating an index is selecting the items you wish to include in the index to measure the variable of interest. There are several things to consider when selecting the items. First, you should select items that have face validity. That is, the item should measure what it is intended to measure.
5:50 7:58 Suggested clip Book Indexing — How To Make A Book Index In Microsoft Word YouTubeStart of suggested client of suggested clip Book Indexing — How To Make A Book Index In Microsoft Word
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