how to plot a graph in excel ph vs cumulative concentration

Source: Lorenz Curve ()Īs we can see, there are two lines in the graph of the Lorenz curve, the curved red line, and the straight black line. You are free to use this image on your website, templates, etc., Please provide us with an attribution link How to Provide Attribution? Article Link to be Hyperlinked Let us now see how a graph for this data looks: –

read more (developed by the Italian statistician Corrado Gini in 1912).Īnd for the line of perfect equality, let us consider this table: – Population it represents the wealth inequalities of the citizens of a particular country. It is called the Gini coefficient Gini coefficient Gini Coefficient or Gini Index is statistical dispersion depicting the income dispersions amongst the population of a country i.e. The area between the two lines expressed as a ratio to the area under the straight line represents the inequality.

The area enclosed between the line and this curve is the precise measurement of inequality. Complementing this graph would be a diagonal line at a 45⁰ angle from the origin (meeting point of the X and Y axis), indicating the population’s perfect income or wealth distribution.īelow this straight diagonal line would be this actual distribution Lorenz curve.

The curve takes the population percentile on the X-axis and cumulative wealth on the Y-axis. Its increasing trend indicates more disparity, appropriately expressed with the cliché line “the rich get richer, while the poor get poorer. Lorenz, is a graphical representation of an economic inequality Economic Inequality Economic inequality is the inequality in wealth distribution and opportunities among people belonging to different groups, communities or countries. The Lorenz curve, named after American economist Max O.

How to plot a graph in excel ph vs cumulative concentration