Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by functions f(x)=(1/10)x+ (9/10) x^3 and g(x)=0.81x^3.5+0.19x i. What percent of the total income do the richest 20% of actuaries receive? ii. Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)?
Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by functions f(x)=(1/10)x+ (9/10) x^3 and g(x)=0.81x^3.5+0.19x i. What percent of the total income do the richest 20% of actuaries receive? ii. Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)?
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
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Lorenz curve
Transcribed Image Text:Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by functions
f(x)=(1/10)x+ (9/10)x^3 and g(x)=0.81x^3.5+0.19x
i. What percent of the total income do the richest 20% of actuaries receive?
ii. Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)?
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