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What is Lorenz Curve
Lorenz Curve is an analytical technique that is used to display inequalities.

Lorenz Curve is an analytical technique that is used to display inequalities.

Mathematically, it is a cumulative distribution function, it is always convex. Ideal Lorenz curve is a straight line from the start under the angle of 45 degrees. The difference between the ideal and real Lorenz curve is called the degree of concentration and reaches values ​​in the range 0.0 to 0.5.

Lorenz Curve

Lorenz Curve in practice: In economics, for example, it is used to display the distribution of wealth in society, land ownership or world oil reserves in the countries.

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Last update: 24.06.2015

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