refer to the following quintile earnings distribution data$$\begin{array} { l r }
\text { Quintile } & \text { Percent } \
\text { Lowest } 20 \% & 4 \% \
\text { Second } 20 \% & 11 \% \
\text { Third } 20 \% & 16 \% \
\text { Fourth } 20 \% & 24 \% \
\text { Highest } 20 \% & 45 \%
\end{array}$$
-If one were to draw a Lorenz curve from the data,what point would be plotted corresponding to "80%" on the horizontal axis?

Question

refer to the following quintile earnings distribution data$$\begin{array} { l r } 
\text { Quintile } & \text { Percent } \
\text { Lowest } 20 \% & 4 \% \
\text { Second } 20 \% & 11 \% \
\text { Third } 20 \% & 16 \% \
\text { Fourth } 20 \% & 24 \% \
\text { Highest } 20 \% & 45 \%
\end{array}$$
-If one were to draw a Lorenz curve from the data,what point would be plotted corresponding to "80%" on the horizontal axis?

Quizplus · Accepted Answer

The Lorenz curve plots the cumulative share of income received by everyone up to a certain quintile against the total population. To find the point corresponding to "80%" on the horizontal axis, we add up the percentages of income share from the lowest four quintiles: 4% + 11% + 16% + 24% = 55%. This means that the bottom 80% of the population earns 55% of the total income.

Refer to the Following Quintile Earnings Distribution Data -If One Were to Draw a Lorenz Curve from the l