July 16, 2008

Measures of Men: Indices

An index is a useful tool for tracking trends in a quantifiable manner using observable facts. Indices can be used to measure almost anything from the stock market to body mass to satisfaction over a period of time using some kind of standard measure or reference.

The SENSEX had some of its best years in 2006 and 2007, as the Indian economy surged. The SENSitive indEX measures the performance of the Bombay Stock Exchange (BSE), the oldest one in Asia and the largest in the world in terms of number of companies listed. The SENSEX uses a free-float market capitalization methodology to calculate the index. This takes into account the number of shares that are readily available in the market of the underlying companies that the index is composed and then multiplying them by their price.

Satyam had the Associate Delight Index (ADI) to measure the job satisfaction of its employees. I introduced the concept of the Female ADI (FADI) after careful study. I noted that FADI increased at whichever office location I worked in and dropped whenever I left. When explaining this phenomenon to some of my colleagues, they said that although the dramatic rise of the FADI was interesting, what they really wanted to know was whether I could help with the MAID (Male Associated Index of Delight).

The Body Mass Index (BMI) is another useful tool in measuring the status of the ARNABody's seasonal fluctuations. The BMI takes a ratio of a person's weight (in kilograms) to the square of their height (in meters) to estimate their level of body fat. The result will go into one of the following four buckets - underweight, normal weight, overweight, and obese.


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