This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: On the Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,500, and ... (Read 332 times)

xroflmao

  • Hero Member
  • *****
  • Posts: 515
on: Jun 29, 2018
On the Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,500, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?
 
  What will be an ideal response?

Question 2

The interest rate is 5 percent. How does 500 to be received a year from today compare in value to 500 right now?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Anton

  • Sr. Member
  • ****
  • Posts: 302
Reply #1 on: Jun 29, 2018
Answer to Question 1

The Gini ratio is the ratio of the area between the line of equality and the Lorenz curve to the entire area beneath the line of equality. So the Gini ratio is 2,500/5,0000 = 0.5.

Answer to Question 2

With an interest rate of 5 percent, 500 deposited in the bank right now will be worth 525 one year from today. (To calculate this amount, the future value is 500(1 + r) = 500(1 + .05 ) = 525.) The 500 received one year from today, however, has a present value of 500/(1 + r) = 500/(1 + .05 ) = 476.19. So, 500 today is worth more than 500 a year from now.


xroflmao

  • Member
  • Posts: 515
Reply 2 on: Jun 29, 2018
Gracias!

sailorcrescent

  • Member
  • Posts: 334
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

The effects of germ-line versus somatic cell mutations. The effects of germ-line versus somatic cell mutations.
Dial-A-Flo in-line device to regulate IV flow. Dial-A-Flo in-line device to regulate IV flow.
A fuel-pressure graph after key on, engine off (KOEO) on a TBI system. A fuel-pressure graph after key on, engine off (KOEO) on a TBI system.
How to write a quadratic expression of a shaded area How to write a quadratic expression of a shaded area
The Kuznets Curve in England and Wales, 1823–1915 The Kuznets Curve in England and Wales, 1823–1915
Use Fleury’s algorithm to determine Euler Circuit in the following graph. Exhibit exactly one ... Use Fleury’s algorithm to determine Euler Circuit in the following graph. Exhibit exactly one ...
Video: Embryonic development - Week 3

For a complete list of videos, visit our video library