Question

The table below shows the monthly labor income in euros for n = 9 students in 2016.

student i 1 2 3 4 5 6 7 8 9

monthly labor income (x) 0 0 0 350 400 500 530 550 800

1 Draw a Lorenz curve to represent the concentration in the data. Show your calculations. Indicate the line of equal distribution in your graphical display.

2 How much income do the top 20 percent of the students have?

Answer 1

Student	Income	% of Income	Quintile	% of Income as per Quintile	Cumulative % of Income as per Quintile
0	0	0.0%	1st	0%	0%
1	0	0.0%	1st
2	0	0.0%	2nd	0%	0%
3	0	0.0%	2nd
4	350	11.2%	3rd	24.0%	24.0%
5	400	12.8%	3rd
6	500	16.0%	4th	32.90%	56.9%
7	530	16.9%	4th
8	550	17.6%	5th	43.1%	100.0%
9	800	25.6%	5th
	3,130	100.0%		100%

a)

oto of 1100, too) low 6 Equal distribution line fot 182 569) yot ho 20 40 60 80 100 % of Population

b) Top 20% of the population earn 43.1% of the income as depicted in the table above.

oto of 1100, too) low 6 Equal distribution line fot 182 569) yot ho 20 40 60 80 100 % of Population