Estimation Technique
The Area Deprivation Index (ADI) estimates the average level of deprivation in an area by combining different indicators of socioeconomic disadvantage. The index is used to identify areas with high levels of deprivation so that resources can be targeted to those areas. The ADI is based on several socioeconomic indicators, including income, education, employment, housing, and transportation. These indicators are combined into a single index using a statistical technique called factor analysis. The ADI is calculated for small geographic areas, such as census tracts or zip codes. It can also be calculated for larger geographic areas, such as counties or states.