A Lorenz Curve for Income Shows the

question 11

Multiple Choice

A Lorenz curve for income shows the

• A) total amount of income graphed against the total number of households.
• B) cumulative percentage of income graphed against cumulative percentage of households.
• C) demand for Lorenz cough drops.
• D) average income graphed against the average number of people in the household.
• E) relationship between income and wealth.

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Definitions:

Sample Proportion

The ratio of members in a sample that have a particular characteristic to the total number of members in the sample.

Standard Error

The standard deviation of the sampling distribution of a statistic, especially of the mean.

Sample Mean

The average value calculated from a sample of observations from a larger population.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population, representing the square root of the variance.