Question

Show all work. Write neatly,use extra paper if needed one single PDF document and upload on Blackboard. Please do not email. Save with the filename and circle answers. Scan all pages together into format yourname_HW1.pdr. This assignment contains 5 questions on two pages. Use the definition of the Gini Index to show G-2 1. (x-L(x))dx where L(x) is the Lorenz curve. Show work to derive this formula. 2. The following table gives points on the Lorenz curve for the U.S. in 1970. 0 6 .2 4 L(x) 0 041 .149 323 568 Based on the table, the poorest 20% of the population in 1970 earned what percent of the a) total income? The richest 20% of the population earned what percent of total income in the U.S. in 1970? b) Use a calculator or computer to find a quadratic curve best fit with form L(x)- ax2 + bx+ c for the for the given data. Write the result below. Round to 2 or 3 places in decimal c) values in the Lorenz curve. 3. Show all work calculating the Gini Index for the U.S. in 1970 using the formula for G derived above. Round decimal values to 2 or 3 places in the Lorenz curve.

Answer 1

Gini index A A tb 乃 ea un der (k-L (x)) dx Gini index