Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by functions f(x)=(1/10)x+ (9/10) x^3 and g(x)=0.81x^3.5+0.19x i. What percent of the total income do the richest 20% of actuaries receive? ii. Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)?
Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by functions f(x)=(1/10)x+ (9/10) x^3 and g(x)=0.81x^3.5+0.19x i. What percent of the total income do the richest 20% of actuaries receive? ii. Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)?
Chapter6: Exponential And Logarithmic Functions
Section6.7: Exponential And Logarithmic Models
Problem 16TI: Recent data suggests that, as of 2013, the rate of growth predicted by Moore’s Law no longer holds....
Related questions
Question
Advance math
Lorenz curve
Transcribed Image Text:Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by functions
f(x)=(1/10)x+ (9/10)x^3 and g(x)=0.81x^3.5+0.19x
i. What percent of the total income do the richest 20% of actuaries receive?
ii. Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 7 steps with 2 images
Recommended textbooks for you