You are a brand analyst working for a large multinational retail organisation in South Africa. The
organisation specialises in premium products. You have been provided with the following
statement: “According to the World Bank, South Africa remains a dual economy with one of the
highest inequality rates in the world, with a Gini Coefficient of 0.643.”
The Board of Directors convened a special meeting to discuss the implications of the quote above.
You are required to produce a brief on the statement above, specifically referring to the
implications it holds for the brand.
You were able to locate the following graph denoting the Lorenz curve from which the Gini
coefficient was derived:
Answer the following question:
Explain how the Gini coefficient is derived from the Lorenz curve by making use of the
graph provided;
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