define lorenz curve and its application ?
no spam ans.
Answers
Definition:
The Lorenz curve drawn is compared with "line of equal distribution". The greater is the distance between the curve and the line of equal distribution the greater will be the Dispersion and vice versa. The concept of Lorenz curve was introduced by Dr. Max O. Lorenz.
Application of Lorenz curve :
Lorenz curve uses the information expressed in Cumulative manner to indicate the degree of variability. It is compared with the "line of equal distribution". when it is applied to a distribution of income and in an economy.
I hope it's Helpful for you......☺☺☺
Answer:
Lorenz Curve is a graphic method of studying dispersion which uses the information expressed in a cumulative manner to indicate the degree of variability.
Applications of Lorenz Curve:
1. Distribution of income
2. Distribution of wealth
3. Distribution of wages
4. Distribution of production
5. Distribution of population