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# It is a percentage of cumulative values of one

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Unformatted text preview: hen Lorenz curve is drawn. The curve starts from the origin (0,0) and ends at (100,100). If the wealth, revenue, land etc are equally distributed among the people of the country, then the Lorenz curve will be the diagonal of the square. But this is highly impossible. 87 The deviation of the Lorenz curve from the diagonal, shows how the wealth, revenue, land etc are not equally distributed among people. Example 16: In the following table, profit earned is given from the number of companies belonging to two areas A and B. Draw in the same diagram their Lorenz curves and interpret them. Profit earned (in thousands) 5 26 65 89 110 155 180 200 Number of Companies Area A 7 12 14 28 33 25 18 8 Area B 13 25 43 57 45 28 13 6 Solution: Cumulative percentage No. of companies Cumulative number Cumulative percentage No. of companies Cumulative number Cumulative percentage Area B Cumulative profit Area A In Rs. Profits 5 26 65 89 110 155 180 200 5 31 96 185 295 450 630 830 1 4 12 22 36 54 76 100 7 12 14 28 33 25 18 8 7 19 33 61 94 119 137 145 88 5 13 23 42 65 82 94 100 13 25 43 57 45 28 13 6 13 38 81 138 183 211 224 230 6 17 35 60 80 92 97 100 LORENZ-CURVE 100 90 Cumulative Percentage of Profit 80 70 60 Line of Equal Distribution 50 Area-A 40 Area-B 30 20 10 0 0 20 40 60 80 100 Cumulative Percentage of Company Exercise – 5 I Choose the best answer: 1. Which of the following is one dimensional diagram. (a) Bar diagram (b) Pie diagram (c) Cylinder (d) Histogram 2. Percentage bar diagram has (a) data expressed in percentages (b) equal width (c) equal interval (d) equal width and equal interval 89 3. Frequency curve (a) begins at the origin (b) passes through the origin (c) begins at the horizontal line. (d) begins and ends at the base line. 4. With the help of histogram we can draw (a) frequency polygon (b) frequency curve (c) frequency distribution (d) all the above 5. Ogives for more than type and less than type distribution intersect at (a) mean (b) median (c) mode (d) origin II Fill in the blanks: 1. Sub-divided bar diagram are also called _...
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