In a study conducted by a certain country's Economic Development Board, it was found that the Lorentz curve for the distribution of income of stockbrokers was described by the function and that of high school teachers by the function Compute the coefficient of inequality for each Lorentz curve. Round your answers to the nearest hundredth. Which profession has a more equitable income distribution?
A) , , stockbrokers
B) , , teachers
C) , , stockbrokers
D) , , stockbrokers

Question

In a study conducted by a certain country's Economic Development Board, it was found that the Lorentz curve for the distribution of income of stockbrokers was described by the function  and that of high school teachers by the function  Compute the coefficient of inequality for each Lorentz curve. Round your answers to the nearest hundredth. Which profession has a more equitable income distribution?
A) , , stockbrokers 
B) , , teachers 
C) , , stockbrokers 
D) , , stockbrokers

Quizplus · Accepted Answer

The coefficient of inequality for the stockbrokers' income distribution is 0.70, while that of the high school teachers' income distribution is 0.45. The lower the coefficient of inequality, the more equitable the income distribution is considered to be. Therefore, high school teachers have a more equitable income distribution than stockbrokers.

In a Study Conducted by a Certain Country's Economic Development