Indicate whether questions 5 through 11 are true or false based upon the following diagram.

-Areas D + F divided by the sum of areas D + F + E is a means for estimating the Gini ratio.

Question

Indicate whether questions 5 through 11 are true or false based upon the following diagram.
 
-Areas D + F divided by the sum of areas D + F + E is a means for estimating the Gini ratio.

Quizplus · Accepted Answer

The Gini ratio, a measure of income inequality, can be estimated by dividing the area between the line of equality and the Lorenz curve (areas D + F) by the total area under the line of equality (areas D + F + E) in the Lorenz curve diagram.

Indicate Whether Questions 5 Through 11 Are True or False