Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by the functions 1 9 - x+ 10 10 and g(x) = 0.54x³.5+ 0.46x (a) What percent of the total income do the richest 20% of bankers receive? Note: Round off to two decimal places if necessary. (b) Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)? 22
Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by the functions 1 9 - x+ 10 10 and g(x) = 0.54x³.5+ 0.46x (a) What percent of the total income do the richest 20% of bankers receive? Note: Round off to two decimal places if necessary. (b) Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)? 22
Chapter33: Income, Income Distribution, And Poverty
Section: Chapter Questions
Problem 11E: What is the difference between in-kind and cash transfers? Winch might increase the utility of the...
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![Based on a study, the Lorenz curves for the distribution of incomes for
bankers and actuaries are given respectively by the functions
1
9
x + x²
10
10
and
g(x) = 0.54x³.5 +0.46x
(a) What percent of the total income do the richest 20% of bankers
receive? Note: Round off to two decimal places if necessary.
(b) Compute for the Gini index of f(x) and g(x). What can be implied
from the Gini indices of f(x) and g(x)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54949e7f-dcb8-4293-b304-1543d1cac238%2Ff691ac67-e3dc-44ea-a766-8f768fe1c054%2Fpkhaof8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Based on a study, the Lorenz curves for the distribution of incomes for
bankers and actuaries are given respectively by the functions
1
9
x + x²
10
10
and
g(x) = 0.54x³.5 +0.46x
(a) What percent of the total income do the richest 20% of bankers
receive? Note: Round off to two decimal places if necessary.
(b) Compute for the Gini index of f(x) and g(x). What can be implied
from the Gini indices of f(x) and g(x)?
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