Tuesday, April 21, 2009

Lorenz Curve

A Lorenz curve is a graphical representation of the cumulative distribution function of a probability distribution. The line of equality displays the values of x and y being equal of a 1 to 1 ratio. The Lorenz curve shows the actual distribution. This one shows the cumulative % of households related to the cumulative % of income.




























http://www.sarpn.org.za/documents/d0000990/images/lorenz_curve.gif

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