a) With the following data draw a Lorenz Curve, putting labels on the graph and writing out data point values. Explain what the Lorenz Curve illustrates, and what the results mean. b) Now explain how one gets the Gini Coefficient from the Lorenz Curve, and what information the coefficient provides

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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a) With the following data draw a Lorenz Curve, putting labels on the graph and writing out data point values. Explain what the Lorenz Curve illustrates, and what the results mean.

b) Now explain how one gets the Gini Coefficient from the Lorenz Curve, and what information the coefficient provides.

% of population
% of income
Lowest 20%
4.8
Second lowest
10.3
Middle 20%
16.2
Second highest
20.7
Highest 20%
48.0
Transcribed Image Text:% of population % of income Lowest 20% 4.8 Second lowest 10.3 Middle 20% 16.2 Second highest 20.7 Highest 20% 48.0
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