Wednesday, December 2, 2009

Lorenz Curve


A Lorenz Curve is a graph showing the proportion of the distribution assumed by the bottom y-values. It can be used to represent income distribution among many other things. The % of households is plotted on the x-axis, and the % of income on the y-axis. This one was developed in 1905 by Max O. Lorenz in 1905 to represent inequality of the distribution of wealth.



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