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Lorenz Curve and Gini Index in Excel

What is Lorenz Curve? In economics, the Lorenz curve is a graphical representation of the distribution of income or of wealth. It was developed by Max O. Lorenz in 1905 for representing the inequality of wealth distribution. The curve is a graph showing the proportion of overall income or wealth assumed by the bottom x% of the people, although this is not rigorously true for a finite population (see below). It is often used to represent income distribution, showing the bottom x% of households and the percentage (y%) of the total income they have. The percentage of households is plotted on the x-axis, the percentage of income on the y-axis. It can also be used to show the distribution of assets. In such use, many economists consider it to be a measure of social inequality. What is the Gini Coefficient? Gini Coefficient, also known as the Gini index, is the statistical measure used to measure the distribution of the income among the country's population, i.e., it helps measure the income inequality of the country’s population. t is a value between 0 and 1. A higher number indicates a greater degree of income inequality. A value of 1 indicates the highest degree of income inequality where a single individual earns the country's entire income. A value of 0 indicates that all individuals have the same income. Thus, a value of 0 indicates perfect income equality. One of the limitations of the Gini index is that its use requires that no one has negative net wealth. For further study: Gastwirth, J. L. (1972). The estimation of the Lorenz curve and Gini index. The review of economics and statistics, 306-316. https://doi.org/10.2307/1937992 ************************************************************************************************** Workshop Alert on An Integrated MCDM approach for Drought Vulnerability Assessment in ArcGIS https://www.aigr.co.in/ ************************************************************************************************** Enrollment link https://www.aigr.co.in/page/an-integr... ******************************************************************************************************* UDEMY Course Rainfall Indices for MCDM models in ArcGIS: how and Why? Preparation of 10 important rainfall indices for MCDM models and time series analysis using Excel, ArcGIS and QGIS Click this link only Rs. 390 or 12.99 USD https://www.udemy.com/course/rainfall... ******************************************************************************************************* Advances in Geographical Research Learn research methodology online with courses of Advanced Geospatial technologies, statistical methods, and Machine Learning algorithms. https://www.aigr.co.in/ ******************************************************************************************************* WhatsApp Group for subscribers: Group 1 https://chat.whatsapp.com/HnJU2SLXyf7... Group 2 https://chat.whatsapp.com/CybK5vtqqq6... *************************************************************************************** Playlist 1. Basics Remote sensing    • Basics Remotesensing   2. MCDM and ML    • MCDM and ML   3. Arc GIS    • Arc GIS   4. Free online data download    • Free online data download   5. Advanced Excel    • Advanced Excel   SUBSCRIBE to the YouTube channel Dr. Jayanta Das, to get notification about our recent lecture uploads on Advances in Geographical Research.    / drjayantadas   ALL RIGHTS RESERVED. #DrJayantaDas