The country of Newland has a Lorenz curve where the area between the line of equal distribution and the Lorenz curve is 0.22 and the area below the Lorenz curve is .46. What is the Gini coefficient for Newland?

Alright let's try this one here. The country of Newland has a Lorenz curve where the area between the line of equal distribution and the Lorenz curve is 0.22 and the area below the Lorenz curve is 0.46. What is the Gini coefficient for new land? So remember the Gini coefficient and I'm just gonna label it GC because I'm lazy, the Gini coefficient is equal to that area A over A plus B. So you just have to remember which one is A and which one is B. A is gonna be the area. So if I draw just a graph right here, remember, we're gonna have our line of equal distribution, and then we're gonna have some sort of Lorenz curve going out like that. Right? It's gonna do something like that and this area between here, that's area A and this is area B down here where we would have something like that. Okay. So area B would be right there, area A there. So let's go back to the problem and see which is which. So it tells us the area between the line of equal distribution, so the blue line, and the Lorenz curve, our green line, is 0.22. So the area between those is 0.22. So that's gonna be a right there. Right? That's gonna be a and the area below the Lorenz curve is 0.46. Lorenz curve being the green line, so they're talking about B right there. So that's gonna be B. So all we gotta do is calculate now. So we're gonna have the Gini coefficient is equal to 0.22 divided by 0.22 +0.46. Let me pull out my calculator and see what we get here. So So we're gonna get Gini coefficient equal 0.22 and the addition on the bottom is 0.6 8. Let's see what we got. We get 0.32. So Gini coefficient equals approximately 0.32, that's going to be our answer here, B. Cool? Alright, let's move on to the next one.

The country of Newland has a Lorenz curve where the area between ...

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The country of Newland has a Lorenz curve where the area between the line of equal distribution and the Lorenz curve is 0.22 and the area below the Lorenz curve is .46. What is the Gini coefficient for Newland?

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