How Does the Distribution of Income Compare to the Distribution

question 14

Essay

How does the distribution of income compare to the distribution of wealth in the U.S.? What does this imply about the respective Lorenz curves?

---

Definitions:

Sample Mean

The average of all observations or data points in a sample.

Standard Error

A statistical measure that describes the accuracy with which a sample represents a population, particularly in mean estimation.

Central Limit Theorem

A statistical theory that states that the distribution of sample means approximates a normal distribution as the sample size becomes larger, regardless of the population's distribution.

Sample Mean

The average value obtained from a sample, used as an estimate of the population mean.