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Lorenz Curve
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Percentages relating to the number of person would be shown on the abscissa and from left to right the scale would begin with and end with 0. The income percentages would be shown on the ordinate and here the scale will begin with 0 at the bottom and go up to at the top. The above percentages would give the following type of curve: It gives the line of equal distribution. The variation in group C is thus greater than the variation in group B.

Curve C is thus at a greater distance from the line of equal distribution, than curve B. The Lorenz curve has a great drawback, It does not give any numerical value of the measure of dispersion, it merely gives a picture of th e extent to which a series is pulled away from an equal distribution. It should be used along with some numerical measure of dispersion. It is very useful in the study of income distributions, distributions of land and wags, etc. Transtutors is the best place to get answers to all your doubts regarding example on Lorenz curve.

Transtutors has a vast panel of experienced Statistics tutorswho can explain the different concepts to you effectively. You can submit your school, college or university level homework or assignment to us and we will make sure that you get the answers related to example on Lorenz curve. The line OP will make an angle of 45degree with the X-axis and is called the line of equal distribution.

Any point on this diagonal shown the same percent on X as on Y. For any given distribution this curve will never cross the line of equal distribution OP. It will always lie below OP unless the distribution is uniform is which case it will coincide with OP. The greater the variability the greater is the distance of the curve from OP. In the diagram OP is the line of equal distribution.

The points lying on the curve OAP indicates a less degree of variability as compared to the points lying on the curve OBP.

What is Example On Lorenz Curve?

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Lorenz Curve in Statistics Home» Statistics Homework Help» Lorenz Curve For studying the dispersion of a series graphically, we are to draw a graph of Lorenz curves devised by the famous Economist Max. O. Lorenz of England.

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Lorenz Curve Assignment Help | Lorenz Curve Homework Help Lorenz Curve The Lorenz Curve, devised by Max O. Lorenz, a famous economic statistician, is a graphic method of studying dispersion.

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