Society Consists Fifteen Single Individuals Incomes Follows 100 000 75 000 25 000 35 000 1 Q34325968

Society consists of fifteen single individuals. Their incomesare as follows:

$100,000$75,000$25,000$35,000$150,000$80,000$15,000$45,000$85,000$90,000$110,000$135,000$95,000$70,000$60,000

Use the data to construct a table showing the percentage oftotal income received by each quintile. Then compute the cumulativedistribution and use it to construct a Lorenz curve and Ginicoefficient.

Expert Answer

Solution:-

As per the data given :-

We have the following table

PersonPolulation in %Income per personCommulative IncomePerfect Distributed income% of Income By Each quintle16.67%$15,000.00$15,000.00$19,000.005.26%213.3333333333333000%$25,000.00$40,000.00$38,000.008.77%320.0000000000000000%$35,000.00$60,000.00$57,000.0012.28%426.6666666666667000%$45,000.00$80,000.00$76,000.0015.79%533.3333333333333000%$60,000.00$1,05,000.00$95,000.0021.05%640.0000000000000000%$70,000.00$1,30,000.00$1,14,000.0024.56%746.6666666666667000%$75,000.00$1,45,000.00$1,33,000.0026.32%853.3333333333333000%$80,000.00$1,55,000.00$1,52,000.0028.07%960.0000000000000000%$85,000.00$1,65,000.00$1,71,000.0029.82%1066.6666666666667000%$90,000.00$1,75,000.00$1,90,000.0031.58%1173.3333333333333000%$95,000.00$1,85,000.00$2,09,000.0033.33%1280.0000000000000000%$1,00,000.00$1,95,000.00$2,28,000.0035.09%1386.6666666666667000%$1,10,000.00$2,10,000.00$2,47,000.0038.60%1493.3333333333333000%$1,35,000.00$2,45,000.00$2,66,000.0047.37%15100.0000000000000000%$1,50,000.00$2,85,000.00$2,85,000.0052.63%

Graph 1 : This curve depicts the % income