I'm looking to create environmental and social sustainability values for countries, similar to what is carried out here.
http://reports.weforum.org/global-competitiveness-report-2014-2015/appendix-a/#view/fn-a
In the first step, the individual indicators in each area are normalized on a 1-to-7 scale and aggregated by averaging the normalized scores, such that a social sustainability score and an environmental sustainability score are calculated for each country.
In the second step, these scores are normalized again on a 0.8-to-1.2 scale,a which is based on the distribution of each of the two sustainability components. The purpose of this methodology is to reward the countries attaining a relatively good performance on the two sustainability components while penalizing those that register a poor performance. Applying this methodology corresponds to transforming actual averages into coefficients ranging from 0.8 to 1.2. For example, the worst performer on the social sustainability pillar obtains a score of 0.8 and the best performer a 1.2. The same calculation is conducted for the environmental sustainability pillar.
$$X_{i,\text{0 to 1}} = \frac{X_i-X_\min}{X_\max-X_\min}$$
I believe the above represents the formula to normalise data? Let us just take for example the following.
Income inequality amongst a sample of countries in 2012 ranged from a min of 20.5 to 88.2. In France the GINI score was 40.6.
Therefore normalising this data would produce a score for France of 0.2968. However, how would I then transform this into a 1-7 Likert scale, with 1 being the best and 7 the worst?
Best Answer
$$ 7-6 * \frac{X_i-X_{min}}{X_{max}-X_{min}} $$
normalizes to a continuous 1-7 scale, mapping $X_{min}$ to 7 and $X_{max}$ to 1.
Some problems creep in at this point ...