Question 1

Lorenz Curve and Gini Coefficient

Income of household

Household 11500

Household 28000

Household 32000

Household 410000

Household 59000

Household 612000

Household 715000

Household 816000

Household 930000

Household 1020000

Use the above information to answer the following questions

I.Arrange the data from lowest to highest.

II.Calculate the total income

III.Calculate the total income in each quintile

IV.Calculate the percent of total income in each quintile

V.Approximate the percentages for easier graphing

VI.Calculate the cumulative percentage of household income

VII.Graph quintiles, cumulative percent of income, and line of perfect equality.

VIII.Calculate the Gini coefficient..