Question

3. Constructing a Lorenz curve from personal income data The Smith quintuplets and the Johnson quintuplets grew up across the street from each other. Now in their 40s, the siblings earn the incomes shown in the following table: Smith Al Smith Bob Smith Chris Smith Dave Smith Ed Smith Total for Smiths Income (Dollars) 60,000 20,000 30,000 40,000 50,000 200,000 Johnson Karl Johnson Larry Johnson Moe Johnson Nate Johnson Oliver Johnson Total for Johnsons Income (Dollars) 10,000 30,000 70,000 50,000 40,000 200,000 Let's think of the Smiths and the Johnsons as two economies and analyze income inequality within each of the economies. Chris Smith's share of the total Smith income is while Oliver Johnson's share of the total Johnson income is Rank the Smith brothers by income from lowest to highest, and calculate each brother's share of the total Smith economy's income. Because there are five brothers, each brother represents a quintile of the income distribution