Wednesday, November 19, 2008

Lorenz Curve (Accumulative Line Graph)




A graph for showing the concentration of ownership of economic quantities such as wealth and income; it is formed by plotting the cumulative distribution of the amount of the variable concerned against the cumulative frequency distribution of the individuals possessing the amount. The Lorenz Curve above discusses the disparity in percentage of income to the percentage of housholds. The curve shows the level of inequality in the two variables.

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