For a general L(x), demonstrate that G = 1 - 2B. What range of values does the Gini index occupy?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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Lp(x) = x^p for p is greater than or equal to 1

7. The information in the Lorenz curve is often summarized in a single measure called the Gini
index (proposed in a 1912 paper by the Italian statistician Corrado Gini). The Gini index is
defined as follows. Let A be the area of the region between y = x and y = L(x) and let B be
the area of the region between y = L(x) and the x-axis (see Figure 1). Then the Gini index
A
is G =
A+B
Compute the Gini index for L, when p = 1.1 and when p= 4.
(A+B)
A =
(x - L(w) dx
6= 2 L-S Llo)dx
A =
G = 2A
S LIx) dx
%3D
|-2
A =
A- i-S Lx) dx
A =
(1-0)= (0.0476
2.1
o.6
%3D
Transcribed Image Text:7. The information in the Lorenz curve is often summarized in a single measure called the Gini index (proposed in a 1912 paper by the Italian statistician Corrado Gini). The Gini index is defined as follows. Let A be the area of the region between y = x and y = L(x) and let B be the area of the region between y = L(x) and the x-axis (see Figure 1). Then the Gini index A is G = A+B Compute the Gini index for L, when p = 1.1 and when p= 4. (A+B) A = (x - L(w) dx 6= 2 L-S Llo)dx A = G = 2A S LIx) dx %3D |-2 A = A- i-S Lx) dx A = (1-0)= (0.0476 2.1 o.6 %3D
For a general L(x), demonstrate that G = 1 – 2B.
What range of values does the Gini index occupy?
Transcribed Image Text:For a general L(x), demonstrate that G = 1 – 2B. What range of values does the Gini index occupy?
Expert Solution
Step 1

For a general Lx, the Gini index G is,

G=AA+B    (1)

Also, from the above tabulation,

G=2A

From equation (1),

G=AA+BA+BG=A

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