One Way to Look at Inequality Is to Look at the Size

question 26

Essay

One way to look at inequality is to look at the size distribution of income. What are two other approaches to measuring inequality? When measuring income distribution according to class, how does the class distribution in most developed countries compare to most developing countries? Recently, changes in the US class distribution of income by class have taken on what shape and why is this so?

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Definitions:

Regression Equation

A mathematical formula used to predict a dependent variable based on one or more independent variables.

Outliers

Data points that significantly differ from the majority of a dataset, often indicating a deviation from the norm.

Residuals

The differences between observed and predicted values in a regression analysis, representing the error not explained by the model.

Heteroscedasticity

A situation in regression analysis where the variance of the error terms varies across different levels of an independent variable.