Friday, April 23, 2010

Lorenz Curve

A Lorenz Curve (or accumulative line graph as it is also known) compares the distribution of two variables against each other to determine whether distribution is equal or unequal. Unequal distributions will always result in two lines, whereas equal distribution would result in one solid 45 degree line. This Lorenz curve compares the cumulative percent of income with the cumulative percent of population.

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