Question

7. 0.34/1 points Previous Answers TANAPMATH7 11.7.034. In a study conducted by a certain country's Economic Development Board, it was found that the Lorentz curve for the distribution of income of stockbrokers was described by the function and that of high school teachers by the function (a) Compute the coefficient of inequality for each Lorentz curve. (Round your answers to two decimal places.) high school teachers 49 stockbrokers 25 (b) Which profession has a more equitable income distribution? stockbrokers O high school teachers

Answer 1

The Lorena curve IgE ofluj TA+B=111617='oisl ovyo Gini toefficient = hits for stockbrokers : x + le Arca under flu) == S'* ** * t. x) dx | | x + 1 (1)+ fez? = 1833 + 1 - 2 2 L 1112) So; Gini wefficient = A = ATB-B = 0.5-1 11 33 + 1 ) - 0.5 = 00303 Gini wefficient = 0.307 for stockbrokers

SUNNAH ASUS crimilerly solving for high school teachers's g(x)= 3 x ² + + + (1 E E Area under g(x)=B= 5' 13 2² + 2x de + b = 0.375 So, hini Ificient = - A A+B ATB-B A+B 0.5-0.375 0.5 [Gini coolfint = 0.25 ] L for high school teachers by Since the gini coefficient of stockbroker is a greater than gini coefficient of teachers. high school Teachers have more equitable income distribution have more ta! ome 1761 -