On the Lorenz Curve Graph, the Area Between the Line

question 145

Essay

On the Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,500, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?

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Definitions:

Sample

A portion, piece, or segment taken from something larger to represent the quality, style, or nature of the whole.

Merchantability

An implied warranty that goods sold by a merchant are reasonably fit for the general purpose for which they are sold.

Fungible Goods

Items that are interchangeable with others of the same type because they are identical in essence and value, such as grains or precious metals.

Average Quality

The median standard of quality among similar products or services, considered acceptable or satisfactory.