My question is about studies like the following: The 2015 SEDA Scores by Country, PDF is available here.

The authors collect 43 indicators for 149 countries and compute a well-being index based on these numbers. Unfortunately they don't explain how they compute the index. But since the indicators comprise a wide range starting from GDP per capita, quality of roads, Gini coefficient, press freedom etc. my first idea would be to combine these indicators to an overall index using a geometric mean.

However the authors mention in the appendix, that each indicator is normalized into a scale of 0-100. Since the scale starts at zero, I believe they cannot use a geometric mean, so my guess is they use an arithmetic mean to compute the index in the end.

So my question is: In such a case should one use an arithmetic mean of normalized scores or better a geometric mean of the indicators without normalization?


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