Sunday, November 29, 2009

Lorenz Curve

http://www.unc.edu/depts/econ/byrns_web/Economicae/Figures/Lorenz.htm

The Lorenz Curve is often used in economics and is often used to show income distribution. The straight line on the top shows what the income would be if it was perfectly equal. The lower line shows what the actual income is line, leaving the area that is shaded red in the middle to be the area that creates the inequality between the two.

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