-As the Income Distribution Becomes More Equal, the Gini Coefficient

question 144

Multiple Choice

$\begin{array}{|c|c|}\hline \text { Year } & \text { Gini Coefficient } \\\hline 1 & 0.38 \\\hline 2 & 0.36 \\\hline 3 & 0.43 \\\hline 4 & 0.42 \\\hline\end{array}$
-As the income distribution becomes more equal, the Gini coefficient

• A) increases.
• B) decreases.
• C) gets closer to 1.
• D) becomes negative.

---

Definitions:

Continuous Random Variable

A variable that can take on an infinite number of values within a given range, representing measurements.

Binomial Distribution

An analytical distribution showing the probability of a variable assuming either of two separate states within a specified number of observations.

Poisson Distribution

A statistical distribution illustrating the likelihood of a specific count of occurrences within a definite time or space span, provided that these occurrences happen at a consistent, known rate and are independent of the duration since the preceding occurrence.

Hypergeometric Distribution

A probability distribution that describes the probability of k successes in n draws, without replacement, from a finite population containing a specific number of successes.