Explain how you would combine these two variables into an additive index where happiness and satisfaction work together to describe a more general state of contentment. End with a description of what the completed index would look like:
Variable 1: How happy are you? Codes: 0=Very happy, 1=Pretty happy, 2=Not at all happy
Variable 2: How satisfied are you with life? Codes: 0=Not at all satisfied, 1=Fairly satisfied, 2=Very satisfied
First, we reverse the codes of scale:
How happy are you?
Codes: 0=Codes: 0=Not at all happy,1=Pretty happy, 2=Very happy,
How satisfied are you with life?
Codes: 0=Not at all satisfied, 1=Fairly satisfied, 2=Very satisfied
Now it becomes easy to combine these two variables into an additive index where happiness and satisfaction add together to describe contentment.
We simply add these two variables to make a new one.
How content is a person with his/her life:
Code:0=Not at all content, 1=Fairly content, 2=Very Content.
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