The Gini Coefficient Is Measured by

question 185

Multiple Choice

The Gini coefficient is measured by

• A)summing up the cumulative income percentages on the Lorenz curve.
• B)summing up the total income earned by the population and dividing by the size of the population.
• C)using the formula: area between perfect inequality and Lorenz curve ÷ area between the line of perfect equality to the Lorenz curve.
• D)using the formula: area between the line of perfect equality and the Lorenz curve ÷ the area under the line of perfect equality.

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Definitions:

Median

The value that divides a set of numerical data into two equal halves, with half of the data points being above it and half below.

Mean

The average of a set of numbers, found by dividing the sum of all the values by the number of values.

Central Tendency

A numerical metric that pinpoints a sole figure to typify a whole data distribution, often utilizing the mean, median, or mode.

Data

Facts and statistics collected together for reference or analysis, often used as a basis for making decisions or drawing conclusions.