I have 7 bands of Landsat and I would like to combine all layers into one layer.
Can ArcMap 10 do this like Erdas software can?
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You need to use the Composite Bands ArcGIS Geoprocessing tool.
According to the ArcGIS Help,
This tool can also create a raster dataset containing subset of the original raster dataset bands. This is useful if you need to create a new raster dataset with a specific band combination and order.