Thursday, April 17, 2014

Lorenz Curve

http://ingrimayne.com/econ/AllocatingRationing/MeasuringIncomeDist.html

A Lorenz Curve is a graphical representation of the cumulative distribution function of the empirical probability distribution of wealth and is a useful concept in describing inequality among the size of individuals in ecology as well as in studies of biodiversity where cumulative proportion of species is plotted against cumulative proportion of individuals.  The graph above consists of a Lorenz curve and measures income distribution.    

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