Thursday, July 18, 2013

Lorenz Curve

 
A Lorenz curve is a curve that shows a probability distribution of values that have been statistically derived. On the graph, a straight diagonal line represents perfect equality of wealth distribution; the Lorenz curve lies beneath it, showing the reality of wealth distribution. The above map is a typical Lorenz curve. It shows incomes from lowest to highest.
 
 
 

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