Suppose the Lorenz curve for the distribution of income of a certain country is given by...
Lorenz Curve The United Nations reports data on income distribution for different countries as a ratio of the income of the richest 10% to the income of the poorest 10%. If the ratio for Japan is 4.5 and the ratio for the United States is 15.9, which of the following statements is correct? a) This ratio is the slope of the Lorenz curve for each country. b) This is the same thing as the Gini coefficient. c) The distribution of...
Mars has an income distribution that can be modeled by the Lorenz Curve L(x)=x2.75 a. What percent of the wealth do the poorest 35% of Martians control? Round your answer to 2 decimal places b.What is Mars's Gini Index? Round your answer to 2 decimal places.
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- 4 marks) In economics, a population's Lorenz curve L(2) gives the percentage (as a decimal) of the country's distribution of wealth among the lowest earning percentage 2 (as a decimal between 0 and 1; e.g., 35% means x = 0.35) of the population. As an example, if L(0.4) = 0.1, then this means that the lowest earning 40% of households have only 10% of the entire economy's wealth. The line y =...
3. In a certain country the Lorenz Curve is modeled by L(x)- .95x2- 26x +31 a. Determine what percent of the wealth the poorest 60% controls. .496 or 49.6% b. Determine what percent of the wealth the wealthiest 25% control. 1-.25=.75 .649375 or 64.9% c. Find the Gini index
3. In a certain country the Lorenz Curve is modeled by L(x)- .95x2- 26x +31 a. Determine what percent of the wealth the poorest 60% controls. .496 or 49.6% b. Determine...
x-2 Find the Gini index of income concentration for the Lorenz curve with equation y =xe The Gini index isRoud to the nearest thousandth as needed.)
x-2 Find the Gini index of income concentration for the Lorenz curve with equation y =xe The Gini index isRoud to the nearest thousandth as needed.)
The following Lorenz curvos represent the distribution of income for a small country in 2015 and 2018 respectively f(x) = x3.8 g(x)=x²+0.4x -0.5 Find the Gini index of income concentration for both QUESTION 26 Interpret the results from the previous problem,
3. The Gini Index Problem How is possible to measure the distribution of income among the inhabitants of a given country One such measure is the Gini index, named after the Italian economist Corrado Gini, who first devised it in 1912. We first rank all households in a country by income and then we compute the percentage of households whose income is at most a given percentage of the country's total income. We define a Lorenz Curve y L(x) on...
Analyze this distribution of income. Draw the Lorenz curve. Complete the Gini index. Calculate top income shares. Income groups Group members Group income 350 2,500 250 5,000 150 15,000 60,000 50 Sum
please ignore part1 ,need answers for part 2
Q5. Inequality Part I: Lorenz-Curve and Gini Coefficient Consider the following (very roughly measured) distribution of income in the economy Share of Households Cumulative Share of Income 0 Thus, the distribution function says that the lower half of the households carns one fourth of the total income in the society 1. Draw the Lorenz-curve for the economy 2 Calculate the Gini-coefficient. Part II: Redistributing Income Suppose that in an economy composed of...
2. The following table gives points on the Lorenz curve for the U.S. in 1970. 0 .6 8 .2 .4 L(x) 0 .323 .568 1 041 .149 a) Based on the table, the poorest 20% of the population in 1970 earned what percent of the total income? b) The richest 20% of the population earned what percent of total income in the US, in 1970? Use a calculator or computer to find a quadratic curve best fit with form L(x)...