-If A in Figure 14-1 has an area of .15, the corresponding Gini coefficient will equal

Question

Quizplus · Accepted Answer

The Gini coefficient is calculated as $G = 1 - 2A$, where $A$ is the area under the Lorenz curve and above the line of perfect equality. Given $A = 0.15$, the Gini coefficient is $G = 1 - 2(0.15) = 1 - 0.3 = 0.7$. However, the Gini coefficient is often expressed as a percentage, so $0.7$ corresponds to $70\%$, indicating a misunderstanding in the calculation or interpretation. The correct calculation from the given options should yield a result that aligns with the options provided, suggesting a mistake in the explanation process. Given the options and the typical calculation method, none directly align with the standard calculation provided, indicating a need for clarification. Typically, if $A = 0.15$, the Gini coefficient calculation directly from this information without additional context or misinterpretation would not match the options given, suggesting an error in the explanation provided.

-If a in Figure 14-1 Has an Area of