Question
Lorenz curve = () is used to represent a wealth distribution in a nation. The entire population is plotted along the x-axis from poorest to
Lorenz curve = () is used to represent a wealth distribution in a nation. The entire population is plotted along the x-axis from poorest to richest, and the height of the curve on the y-axis shows the percentage of total income received by the proportion of the population given on the x-axis. Graph of function = , called the line of perfect equality, represents the population where everyone has the same income. The area between the graphs of the two functions for 0 100 shows the country's income inequality.
The table below gives the percentage of income for selected percentages of people in a country.
10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | |
3.32 | 6.41 | 8.96 | 12.39 | 19.32 | 28.11 | 38.65 | 55.13 | 78.29 |
- Use Excel to fit a quadratic curve to the given data.
- Plot the data along with the obtained curve above and the line = .
- Using the obtained curve, approximate the income inequality for the given country.
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