Wednesday, December 12, 2012

Lorenz Curve and Gini Coefficient

Today's lecture notes are here.  An excellent interactive demonstration is here.

Use the data below to prepare a Lorenz Curve and find the Gini Coefficient.

The small country of Alpha has 10 citizens. The citizens and their earned incomes are listed below:
Citizen       Earned Income
Zak              $ 2,000
Erika           $10,000
Bill               $ 1,500
Juan            $ 15,000
Harry           $ 16, 000
Jose            $ 9,000
Emily           $ 30,000
Kai               $ 12,000
Robert         $ 8,000
Kathleen      $ 20,000
From the data, have the students graph the Lorenz Curve and calculate the Gini Coefficient.

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