Thursday, August 7, 2008

Accumulative line graph or Lorenz curve

A Lorenz curve shows the distribution of a variable such as population against an independent variable such as income or area settled. If the distribution of the dependent variable is equal, the plot will show as a straight, 45° line. Unequal distributions will yield a curve. The gap between this curve and the 45° line is the inequality gap. Such a gap exists everywhere, although the degree of inequality varies. This particular picture shows how a Lorenz curve shows inequality.

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