Problem 886

The Lorenz curve for the income distribution in a certain country is given by f(x) = \frac{3x^{2}}{4}+\frac{1}{4}x.

a. Find the Gini index.

b. Use the answer in 1) to determine if the income of this country is more equally distributed. Less

Equally distributed, or distributed the same as a second country having an index of income concentration of 0.2.




a. 0.25

b. Less equally distributed.


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