?Lorenz curves and the Gini index A Lorenz curve is given by y = L(x), where \(0 \leq x | StudySoup
Calculus: Early Transcendentals | 1st Edition | ISBN: 9780321570567 | Authors: William L. Briggs, Lyle Cochran, Bernard Gillett

Table of Contents

1
Functions

1,1

1.1
Review of Functions
1.2
Representing Functions
1.3
Inverse, Exponential, and Logarithm Functions
1.4
Trigonometric Functions and Their Inverses

2
Limits
2.1
The Idea of Limits
2.2
Definitions of Limits
2.3
Techniques for Computing Limits
2.4
Infinite Limits
2.5
Limits at Infinity
2.6
Continuity
2.7
Precise Definitions of Limits

3
Derivatives
3.1
Introducing the Derivative
3.10
Related Rates
3.2
Rules of Differentiation
3.3
The Product and Quotient Rules
3.4
Derivatives of Trigonometric Functions
3.5
Derivatives as Rates of Change
3.6
The Chain Rule
3.7
Implicit Differentiation
3.8
Derivatives of Logarithmic and Exponential Functions
3.9
Derivatives of Inverse Trigonometric Functions

4
Applications of the Derivative
4.1
Maxima and Minima
4.2
What Derivatives Tell Us
4.3
Graphing Functions
4.4
Optimization Problems
4.5
Linear Approximation and Differentials
4.6
Mean Value Theorem
4.7
L'Hopital's Rule
4.8
Antiderivatives

5
Integration
5.1
Approximating Areas under Curves
5.2
Definite Integrals
5.3
Fundamental Theorem of Calculus
5.4
Working with Integrals
5.5
Substitution Rule

6
Applications of Integration
6.1
Velocity and Net Change
6.2
Regions Between Curves
6.3
Volume by Slicing
6.4
Volume by Shells
6.5
Length of Curves
6.6
Physical Applications
6.7
Logarithmic and Exponential Functions Revisited
6.8
Exponential Models

7
Integration Techniques
7.1
Integration by Parts
7.2
Trigonometric Integrals
7.3
Trigonometric Substitution
7.4
Partial Fractions
7.5
Other Integration Strategies
7.6
Numerical Integration
7.7
Improper Integrals
7.8
Introduction to Differential Equations

8
Sequences and Infinite Series
8.1
An Overview
8.2
Sequences
8.3
Infinite Series
8.4
The Divergence and Integral Tests
8.5
The Ratio and Comparison Tests
8.6
Alternating Series

9
Power Series
9.1
Approximating Functions with Polynomials
9.2
Properties of Power Series
9.3
Taylor Series
9.4
Working with Taylor Series

10
Parametric and Polar Curves
10.1
Parametric Equations
10.2
Polar Coordinates
10.3
Calculus in Polar Coordinates
10.4
Conic Sections

11
Vectors and Vector-Valued Functions
11.1
Vectors in the Plane
11.2
Vectors in Three Dimensions
11.3
Dot Products
11.4
Cross Products
11.5
Lines and Curves in Space
11.6
Calculus of Vector-Valued Functions
11.7
Motion in Space
11.8
Length of Curves
11.9
Curvature and Normal Vectors

12
Functions of Several Variables
12.1
Planes and Surfaces
12.2
Dot Products
12.3
Limits and Continuity
12.4
Partial Derivatives
12.5
The Chain Rule
12.6
Directional Derivatives and the Gradient
12.7
Tangent Planes and Linear Approximation
12.8
Maximum/Minimum Problems
12.9
Lagrange Multipliers

13
Multiple Integration
13.1
Double Integrals over Rectangular Regions
13.2
Double Integrals over General Regions
13.3
Double Integrals in Polar Coordinates
13.4
Triple Integrals
13.5
Triple Integrals in Cylindrical and Spherical Coordinates
13.6
Integrals for Mass Calculations
13.7
Change of Variables in Multiple Integrals

14
Vector Calculus
14.1
Vector Fields
14.2
Line Integrals
14.3
Conservative Vector Fields
14.4
Green’s Theorem
14.5
Divergence and Curl
14.6
Surface Integrals
14.7
Stokes’ Theorem
14.8
Divergence Theorem

Textbook Solutions for Calculus: Early Transcendentals

Chapter 6.2 Problem 61

Question

Lorenz curves and the Gini index A Lorenz curve is given by y = L(x), where \(0 \leq x \leq 1\) represents the lowest fraction of the population of a society in terms of wealth and \(0 \leq y \leq 1\) represents the fraction of the total wealth that is owned by that fraction of the society. For example, the Lorenz curve in the figure shows that L(0.5) = 0.2, which means that the lowest 0.5(50%) of the society owns 0.2(20%) of the wealth. (See Guided Projects for more on Lorenz curves.)

a. A Lorenz curve y = L(x) is accompanied by the line y = x, called the line of perfect equality. Explain why this line is given this name.

b. Explain why a Lorenz curve satisfies the conditions L(0) = 0, L(1) = 1, and \(L^{\prime}(x) \geq 0\) on [0, 1].

c. Graph the Lorenz curves \(L(x)=x^{p}\) corresponding to p = 1.1, 1.5, 2, 3, 4. Which value of p corresponds to the most equitable distribution of wealth (closest to the line of perfect equality)? Which value of p corresponds to the least equitable distribution of wealth? Explain.

d. The information in the Lorenz curve is often summarized in a single measure called the Gini index, which is defined as follows. Let A be the area of the region between y = x and y = L(x) (see figure) and let B be the area of the region between y = L(x) and the x-axis. Then the Gini index is \(G=\frac{A}{A+B}\). Show that \(G=2 A=1-2 \int_{0}^{1} L(x) d x\).

e. Compute the Gini index for the cases \(L(x)=x^{p}\) and p = 1.1, 1.5, 2, 3, 4.

f. What is the smallest interval [a, b] on which values of the Gini index lie, for \(L(x)=x^{p}\) with \(p \geq 1\)? Which endpoints of [a, b] correspond to the least and most equitable distribution of wealth?

g. Consider the Lorenz curve described by \(L(x)=5 x^{2} / 6+x / 6\). Show that it satisfies the conditions L(0) = 0, L(1) = 1, and \(L^{\prime}(x) \geq 0\) on [0, 1]. Find the Gini index for this function.

Solution

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The first step in solving 6.2 problem number trying to solve the problem we have to refer to the textbook question: Lorenz curves and the Gini index A Lorenz curve is given by y = L(x), where \(0 \leq x \leq 1\) represents the lowest fraction of the population of a society in terms of wealth and \(0 \leq y \leq 1\) represents the fraction of the total wealth that is owned by that fraction of the society. For example, the Lorenz curve in the figure shows that L(0.5) = 0.2, which means that the lowest 0.5(50%) of the society owns 0.2(20%) of the wealth. (See Guided Projects for more on Lorenz curves.)a. A Lorenz curve y = L(x) is accompanied by the line y = x, called the line of perfect equality. Explain why this line is given this name.b. Explain why a Lorenz curve satisfies the conditions L(0) = 0, L(1) = 1, and \(L^{\prime}(x) \geq 0\) on [0, 1].c. Graph the Lorenz curves \(L(x)=x^{p}\) corresponding to p = 1.1, 1.5, 2, 3, 4. Which value of p corresponds to the most equitable distribution of wealth (closest to the line of perfect equality)? Which value of p corresponds to the least equitable distribution of wealth? Explain.d. The information in the Lorenz curve is often summarized in a single measure called the Gini index, which is defined as follows. Let A be the area of the region between y = x and y = L(x) (see figure) and let B be the area of the region between y = L(x) and the x-axis. Then the Gini index is \(G=\frac{A}{A+B}\). Show that \(G=2 A=1-2 \int_{0}^{1} L(x) d x\).e. Compute the Gini index for the cases \(L(x)=x^{p}\) and p = 1.1, 1.5, 2, 3, 4.f. What is the smallest interval [a, b] on which values of the Gini index lie, for \(L(x)=x^{p}\) with \(p \geq 1\)? Which endpoints of [a, b] correspond to the least and most equitable distribution of wealth?g. Consider the Lorenz curve described by \(L(x)=5 x^{2} / 6+x / 6\). Show that it satisfies the conditions L(0) = 0, L(1) = 1, and \(L^{\prime}(x) \geq 0\) on [0, 1]. Find the Gini index for this function.
From the textbook chapter Regions Between Curves you will find a few key concepts needed to solve this.

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Title Calculus: Early Transcendentals 1 
Author William L. Briggs, Lyle Cochran, Bernard Gillett
ISBN 9780321570567

?Lorenz curves and the Gini index A Lorenz curve is given by y = L(x), where \(0 \leq x

Chapter 6.2 textbook questions

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