Fconomlc Growth TbdolEd

Chapter 6-appen x R: seBltlelay Analysts
Wci8hling Esine enployed in Uc curenl studv index is bos€d o' ov€mge valucs' lor
chcriiB s.snivity of itulex vridi Eslrl ro *eighs tris nudv enPlovs a detrilcd anrlvsis
amp.rinB dk indi6 6lcuLl.J bv cnplovi.s dilTcEnr weighting Egin6 Y@ 2006 vrlws
!E 48rcsrr.d in indi6 *irh *cienB bG.d o followins w'ighrins Esid6 l) Easl d ad-
h@ opp@h to dE rcisndng oa vanabba on $en Elarirc initrtoe ii @imic
p4rloddce 6 the lmher s{.s il 2) Da$d on iv.mse wtignling wh€ft lh' rcsrch't
s€ishred dif€rcnr €nponenb of rhe lidcx eqltnv l) calculai'd th$ugh principil
6mponent Mlysis (PcA) bced on 2006 vllu.s lnd 4) cDdcnl weightins Egim"mploving
I'CA blsed on av.nge vald.s 6 ued in rhtu sludv Tnus td @h onponcnt tnd $b_
cootoNnls of insiii'nion, theE would b. folr ditTcF indi6 Fd @nra s of lhe
i lies, the Ewher €mplolql buh th. PoFn @Nldid fld rL Sp'otu R'nk
(jmlllim. Th. 6ulb 6 dcaicr.d f'm T.bl€ l0 dDw t vdv hiBh @Lrion b'l@ rre
i.dici Boti th. Pdlm dd sp.m. Cdllrcidt c hisn ad Fsnirc.!d tppmxintlcly
thc en.. Th. tvemge ml ion caaaf,i€nt of both Pg'Mn and Sp'.md monS itdicB is
lhout 0,98. Mo€ over dnd tll the indi€s oe highlv slrtiauv siE ificdt Gi8lificanl l%
l.vel). This shows .hot vei.blcs !g8tu8.kd in rhe index rhroush emplovi'g difforcnt
w.i8hlins EEiD6 Nould off.r sinila. Multx $owios lllrt indi6 ntv nol be msh emniv'
1o vlridids in the N.ighls. Hen@ Oc rcsulb nigh b€ hishlv iMitive to $e choi@ of
*cighin8 n.rhod cmplo)td- Sinild cmhsion it Epod.d in (Cffiv.tr{t Lrsq 2003:
Krufndq Knry ed M&*l@i 2fi')6, 2{Xt}