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a)

Initial data at first:

 

0
0
DAYS
:
0
0
HOURS
:
0
0
MINUTES
:
0
0
SECONDS
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1

2

3

4

Total

Incomes

200

400

600

800

2000

People

100

50

150

50

350

Step 1: The calculation of the “% values”.

 

1

2

3

4

Total

Incomes, %

10

20

30

40

100

People, %

28.57

14.28

42.85

14.28

100

Step 2: The calculation of the cumulative sums.

 

1

2

3

4

Incomes, %

10

30

60

100

People, %

28.57

42.85

85.7

99.98

b)

Initial data at first:

 

1

2

3

4

Total

Incomes

100

200

300

400

1000

People

50

35

55

35

175

Step 1: The calculation of the “% values”.

 

1

2

3

4

Total

Incomes, %

10

20

30

40

100

People, %

28.57

20

31.43

20

100

Step 2: The calculation of the cumulative sums.

 

1

2

3

4

Incomes, %

10

30

60

100

People, %

28.57

48.57

80

100

 

c)

Initial data at first:

 

1

2

3

4

Total

Incomes

100

200

300

400

1000

People

75

40

50

10

175

Step 1: The calculation of the “% values”.

 

1

2

3

4

Total

Incomes, %

10

20

30

40

100

People, %

42.86

22.86

28.57

5.71

100

Step 2: The calculation of the cumulative sums.

 

1

2

3

4

Incomes, %

10

30

60

100

People, %

42.86

65.72

94.29

100

d)

Comments

To start with, the Lorenz curve that reflects initial data for c) deviates from bisector the most. This speaks a high polarization of society in terms of incomes. This means that in c) there exist a great gap of incomes between the richest- and the poorest people. If to speak about a) and b), these two variants show a quite similar result. However, there still exists one difference between them. The point is that in a) the middle of Lorenz curve approaches to bisector. This speaks about a strong middle class in society with the normal level of the differentiation of incomes.

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