The Lorenz Curve

question 133

Multiple Choice

The Lorenz curve

• A)plots graphically the poverty rate over time.
• B)is located closer to the diagonal today than it was in 1980.
• C)plots graphically the distribution of income.
• D)is located farther from the diagonal when income is defined to include the value of noncash transfers.

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Definitions:

T-statistic

A type of statistic used in hypothesis testing, calculated as the ratio of the departure of the estimated value of a parameter from its hypothesized value to its standard error.

Sample Size

The count of data points or observations gathered in a research study for deriving conclusions.

Population Mean

The average of a set of characteristics (e.g., measurements, scores) for every individual or entity in the entire population.

Standard Error

The standard deviation of the sample mean distribution or an estimate of that standard deviation.