Lorenz Curve Economists use Lorenz curves to illustrate

Chapter 7, Problem 84

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Lorenz Curve Economists use Lorenz curves to illustrate the distribution of income in a country. A Lorenz curve, represents the actual income distribution in the country. In this model, represents percents of families in the country and represents percents of total income. The model represents a country in which each family has the same income. The area between these two models, where indicates a countrys income inequality. The table lists percents of income for selected percents of families in a country. (a) Use a graphing utility to find a quadratic model for the Lorenz curve. (b) Plot the data and graph the model. (c) Graph the model How does this model compare with the model in part (a)? (d) Use the integration capabilities of a graphing utility to approximate the income inequality. xx