Let4 - Let'$10,000,$24,000...

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Let's say that the average incomes for five segments in a society are $10,000, $24,000,  $50,000, $80,000, and $110,000. In order to look at income distribution, we need to see  what percentage of total income each segment makes, rather than the actual amount of  money each makes. Since each of the segments is equal in size, we don't need to worry  about weighting the average incomes, and can do a straightforward part-over-whole  calculation of each segment's earnings.  For total income we will use the sum of the five average incomes:  Total Income = 10000 + 24000 + 50000 + 80000 + 110000  Total Income = 274000  Next we find the percentage of total income that each segment of the population earns,  by dividing their income by the total income:  Bottom segment percentage = 10000/274000 = 0.036 = 3.6%  Second segment percentage = 24000/274000 = 0.088 = 8.8% 
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This note was uploaded on 12/13/2011 for the course ECO 1320 taught by Professor Staff during the Fall '11 term at Texas State.

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Let4 - Let'$10,000,$24,000...

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