Re: Gini Coefficient Questions!!!!

Posted by maahi on Apr 30, 2013; 12:43pm
URL: http://discussion-forum.276.s1.nabble.com/Gini-Coefficient-Questions-tp7580221p7580245.html

Q1.(a) There are 5 individuals in an economy n1, n2, n3, n4, n5 and their incomes are 5,11,18,25,41 respectively..
where n1=poorer person
n5=richest person
find The Gini coefficient of inequality for this economy??



q1) ginni coeff= ginni mean difference / 2mean
ginni mean difference = sum of the mutual differences/{n(n-1)/2} {(11-5 )+(18-5) +(25-5)+(41-5)+(41-11)+(25-11)+(18-11)+(25-18)+(41-18)+(41-25) }= 172
sum of the mutual differences  {(11-5 )+(18-5) +(25-5)+(41-5)+(41-11)+(25-11)+(18-11)+(25-18)+(41-18)+(41-25) }= 172
5*4/2=10
ginni mean difference= 17.2
mean = 20
ginni coeff= 17.2 /40 =