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Unformatted text preview: area for the triangles that can be drawn by joining the each plotted points, the cumulative frequency of households associated with it, and the point of origin. Let us focus on the first triangle. The area of this red triangle can be calculated as . The next triangle is If we want the area of the green triangle it is but we have already calculated the red triangle. So the area we want in addition is or if we focus on the trapezoid . In general, the Gini coefficient may be calculated from the following formula for area B : where x i and y i are the two cumulative relative frequencies on the X and Y axis. x = y = 0 and x k = y k = 100 (or 1). Alternatively, the Gini coefficient can be expressed as In case where x k = y k = 100, the area . Hence...
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This note was uploaded on 02/26/2011 for the course BUSINESS Bus061 taught by Professor Hidi during the Spring '11 term at West Valley.
 Spring '11
 Hidi

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