Question
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f. What is the smallest interval on which values of the ini index lie for with ?
The minimum value of is 0 and the maximum value of is 1 .
Which endpoints of correspond to the least and most equitable distribution of wealth?
corresponds to the least equitable and corresponds to the most equitable distribution of wealth.

Ask by Henry Dickson. in the United States
Jan 27,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

The smallest interval for the Gini index is .
  • represents the least equitable distribution of wealth.
  • represents the most equitable distribution of wealth.
So, the endpoints are:
  • for the least equitable distribution.
  • for the most equitable distribution.

Solution

The Gini index measures the inequality of a distribution, such as income or wealth distribution, and it ranges between 0 and 1:
  • 0 represents perfect equality, where everyone has the same wealth.
  • 1 represents maximal inequality, where one individual has all the wealth, and everyone else has none.
Given the function with , the smallest interval on which the Gini index lies is:
Within this interval:
  • corresponds to the least equitable distribution of wealth. This means that wealth is concentrated in the hands of a single individual or a very small group, with everyone else having little to none.
  • corresponds to the most equitable distribution of wealth. In this scenario, wealth is perfectly evenly distributed among all individuals, with no disparities whatsoever.
So, the filled-in statements are:
Summary:
  • Smallest Interval for :
  • Least Equitable Distribution:
  • Most Equitable Distribution:
Final Statement:
The smallest interval is [0, 1]. G = 1 corresponds to the least equitable distribution of wealth and G = 0 corresponds to the most equitable distribution of wealth.

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Extra Insights

The smallest interval for the Gini index when evaluating the function with is . The minimum value signifies a perfectly equitable distribution of wealth, where everyone has the same income. On the other hand, the maximum value indicates a completely inequitable distribution, where one person has all the income and everyone else has none.
Thus, corresponds to the least equitable distribution and corresponds to the most equitable distribution of wealth.

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