Monday, April 15, 2013

Lorenz Curve

An accumulative graph or Lorenz curve could also be called a probability curve. It is a graph for showing the concentration of ownership of economic quantities such as wealth and income. Formed by plotting the cumulative distribution of the amount of the variable concerned against the cumulative frequency distribution of the individuals possessing amount.  This graph displays the cumulative percentage of income over cumulative percent of population. 

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