Question

state the step involved in drawing lorenz curve

Answer 1

The Lorenz Curve is a graphical method used to display the concentration of activities within an area (e.g. the degree of industrial specialization within an urban area). Fieldwork data may be used but it is more common to use secondary sources (e.g. census data, etc). This technique is particularly useful as it provides a good visual comparison of any observed differences and from it a precise index (Gini Coefficient) can be calculated.

To draw a Lorenz Curve, follow these steps:

Gather the data (e.g. census data from two cities)

For each set of data, rank the categories and order them by rank in a table

Convert each value in a % of the total

Calculate the running totals (ie cumulative %, by adding the % of one line to the ones before)

Graph ranks (horizontal) against cumulative % (vertical)

Draw the "even distribution line" running from (rank = 0, % = 0) to (rank = max, % = 100%), which represents the line if all the categories were the same size.