Question
community: jane- 4 million bernard- 2 million kate- 9 million john- 9 million kamala-6 million use...
community:
jane- 4 million
bernard- 2 million
kate- 9 million
john- 9 million
kamala-6 million
use the info above to create a lorenz curve and calc the gini
coefficient
Homework Answers
Answer #1
| Community | income in millions | % income | % population | income/population | cumm %pop | cumm %inc |
| 0 | 0 | |||||
| Bernard | 2 | 0.066666667 | 0.20 | 0.333333333 | 0.20 | 0.0666667 |
| Jane | 4 | 0.133333333 | 0.20 | 0.666666667 | 0.40 | 0.2 |
| Kamala | 6 | 0.2 | 0.20 | 1 | 0.60 | 0.4 |
| Kate | 9 | 0.3 | 0.20 | 1.5 | 0.80 | 0.7 |
| John | 9 | 0.3 | 0.20 | 1.5 | 1.00 | 1 |
| 30 |
Gini Coefficient= area under the curve of equity and above the lorenz curve
| cumm %pop | cumm %inc | area under the lorenz | Area A= | 0.126667 | |
| 0 | 0 | Gini= | 0.253333 | ||
| 0.20 | 0.0666667 | 0.006666667 | |||
| 0.40 | 0.2 | 0.026666667 | |||
| 0.60 | 0.4 | 0.06 | |||
| 0.80 | 0.7 | 0.11 | |||
| 1.00 | 1 | 0.17 | |||
| 0.373333333 |
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