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 LORENZCURVE 100 90 Cumulative Percentage of Profit 80 70 60
Line of Equal Distribution 50
AreaA 40 AreaB 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. Subdivided bar diagram are also called _...
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 Winter '08
 Moshiri
 Business, Statistics

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