Tuesday, July 29, 2014

Lorenz Curve Graph


(mid-page)

A Lorenz curve graph shows the actual curve that represents real data from observations that occur in a geometric sequence and an ideal line which occurs in an arithmetic sequence created to show the disparity between the actual curve and the ideal line. Both lines are shown so that disparity can be seen from the idealized line to the actual curve of a specific country at a specific time. The image above is an example of a Lorenz curve graph for South Africa which shows perfect equality as the idealized arithmetic sequence line while the actual percent income curve is represented as the geometric sequence curve. 

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