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Lorenz Curve-Presentation1
Lorenz Curve-Presentation1
Gini Coeffieicnt
Suppose you are given data like this:
Fraction of income
Fraction of % of Population
Fraction of Income Population that is Richer Score
50 100
Cumulative income
30 50
18 20
2 2
Fraction of population 10 40 40 10
Cumulative population 10 50 90 100
Organize our Table
Individual Cumulative
Population (%) Income (%) Population (%) Income (%)
10 2 10 2
40 18 50 20
40 30 90 50
10 50 100 100
50 30 30 50
20 18 18 20
2 2 2 2
10 40 40 10
10 50 90 100
100 50 50 100
50 30 30 50
20 18 18 20
2 2 2 2
10 40 40 10
10 50 90 100
Computation
Individual Cumulative
Population (%) Income (%) Population (%) Income (%)
10 2 10 2
40 18 50 20
40 30 90 50
10 50 100 100