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A group of 10 people have the following annual incomes: $24,000, $18,000, $50,000, $100,000, $12,000, $36,000,...

A group of 10 people have the following annual incomes: $24,000, $18,000, $50,000, $100,000, $12,000, $36,000, $80,000, $10,000, $24,000, $16,000.

Calculate the share of total income that each quintile receives from this income distribution. What percent of the total income is represented by the fourth quintile? Round your answer to the nearest tenth.

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Answer #1

ANSWER:

1st quintile = (10,000 + 12,000) / (10,000 + 12,000 + 16,000 + 18,000 + 24,000 + 24,000 + 36,000 + 50,000 + 80,000 + 100,000) = 22,000 / 370,000 = 5.94%

2nd quintile = (16,000 + 18,000) / (10,000 + 12,000 + 16,000 + 18,000 + 24,000 + 24,000 + 36,000 + 50,000 + 80,000 + 100,000) = 34,000 / 370,000 = 9.18%

3rd quintile = (24,000 + 24,000) / (10,000 + 12,000 + 16,000 + 18,000 + 24,000 + 24,000 + 36,000 + 50,000 + 80,000 + 100,000) = 48,000 / 370,000 = 12.97%

4th quintile = (36,000 + 50,000) / (10,000 + 12,000 + 16,000 + 18,000 + 24,000 + 24,000 + 36,000 + 50,000 + 80,000 + 100,000) = 86,000 / 370,000 = 23.24%

5th quintile = (80,000 + 100,000) / (10,000 + 12,000 + 16,000 + 18,000 + 24,000 + 24,000 + 36,000 + 50,000 + 80,000 + 100,000) = 180,000 / 370,000 = 48.64%

% of total income for 4th quintile is 23.24%

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