Question: Presented below in the table are the average weekly expenditure ($) of households headed by elderly people aged 65 and above on recreational activities in

Presented below in the table are the average weekly expenditure ($) of households headed by elderly people aged 65 and above on recreational activities in Community A and Community B.

Average weekly expenditure on recreational activities ($)

Community A

Groups

1 2 3 4 5 Total

Using the information provided above,

people aged

30 240 60 150 90 90

120 80 150 90 650

65 and above Community B

50 40 30

230 300 650

Number of Households headed by

  1. i) calculate the Gini Coefficient of weekly expenditure on recreational activities by households headed by elderly people aged 65 and above in Community A and in Community B (Please keep 4 decimal places for all percentages and Gini coefficients. You must show necessary working steps.). [16 marks]

  2. ii) comment on the differences of the Gini Coefficients obtained in part i). [2 marks]

  3. iii) Assuming a recent policy initiative has just been implemented that provides additional cash income to elderly aged 65 and above, briefly discuss the potential impact of this initiative on the pattern of consumption of households headed by elderly people aged 65 and above in Community A and Community B. [2 marks]

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