Matthew Spangler (University of Nebraska - Lincoln): An index, or an economic index, is a collection of EPDs multiplied by an economic weight. So, let's think of a simple example. If I have three EPDs, each of them has its own economic weighting. So, I can multiply EPD #1 times its economic weight, and then I add to that EPD #2 multiplied by its economic weight and then so on and derive the economic index. Now, the economic weightings can be thought of as this: if I hold everything else constant and increase one EPD by one unit, that economic weighting represents the change in my profitability or income.
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