Hints 1. Calculate the relative interquartile range Answer the following questions use figure 1 and the hints above: Use the following equation to find the relative interquartile range: 1. Calculate the relative interquartile range Relative IQR = Annual Earnings75 - Annual Earnings25 2. Graph the Lorenz Curve: Annual Earningsso 2. Graph the Lorenz Curve 3. Calculate the Gini Coefficient: To graph the Lorenz Curve, we need to use the percentage of individuals, percentage of income, cumulative percentage of income, and cumulative percentage of individuals to graph the Figure 1 following: Number Annual Cumulative of Earnings_ Total Cumulative Cumulative Percentage of % of Percentage Individuals People Earnings Percentage of Earnings of Income (per person) Individuals Income % of Income 60 :00 180000 80000 0.1 0.1 0.01154216 0.011542161 100 - 90 5000 450000 630000 .15 0.25 0.0288554 0.040397563 90 7500 675000 1305000 1.15 ).4 0.0432831 0.083680667 60 8000 480000 1785000 0.1 0.5 0.0307791 0.114459763 80 60 21000 1260000 3045000 0.1 0.6 0.08079513 0.19254889 90 25000 2250000 5295000 0.1 0.75 0.14427701 0.339831901 90 50000 4500000 9795000 0.15 0.9 0.28855402 0.628085925 60 40 90000 3600000 13395000 0.066666 0.9666667 0.23084322 0.858929144 20 10000 2200000 13595000 0.033333 1 0.14107086 1.0 Total 500 15595000 40 20 % of Individuals 60 80 100 3. Calculate the Gini Coefficient To calculate the Gini Coefficient, we need to calculate the area under the Lorenz Curve. Then we can use the equation: 0.5 * 100 * 100 - area under Lorenz Curve Gini Coefficient = 0.5 * 100 * 100