Question: Lorenz curve = () is used to represent a wealth distribution in a nation. The entire population is plotted along the x-axis from poorest to

Lorenz curve = () is used to represent a wealth distribution in a nation. The entire population is plotted along the x-axis from poorest to richest, and the height of the curve on the y-axis shows the percentage of total income received by the proportion of the population given on the x-axis. Graph of function = , called the line of perfect equality, represents the population where everyone has the same income. The area between the graphs of the two functions for 0 100 shows the country's income inequality.

The table below gives the percentage of income for selected percentages of people in a country.

10

20

30

40

50

60

70

80

90

3.32

6.41

8.96

12.39

19.32

28.11

38.65

55.13

78.29

  1. Use Excel to fit a quadratic curve to the given data.
  2. Plot the data along with the obtained curve above and the line = .
  3. Using the obtained curve, approximate the income inequality for the given country.

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