The Lorenz Curve is most often used in economics. It can explain the distribution of income among a population like this graph, but it can also be used for other variables. This chart is very informative. The straight line in a Lorenz curve shows what equal distribution would be. The curved lines connect dots showing the actual distribution. Thanks to the breakdown provided, it is easy to understand how this Lorenz curve shows the top 25% of the population has 70% of the wealth while the bottom 25% has only 5% of the wealth. This graph can be found at Answers.com
Wednesday, July 9, 2008
Lorenz Curve
The Lorenz Curve is most often used in economics. It can explain the distribution of income among a population like this graph, but it can also be used for other variables. This chart is very informative. The straight line in a Lorenz curve shows what equal distribution would be. The curved lines connect dots showing the actual distribution. Thanks to the breakdown provided, it is easy to understand how this Lorenz curve shows the top 25% of the population has 70% of the wealth while the bottom 25% has only 5% of the wealth. This graph can be found at Answers.com
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