Re: JNU ECOM 2010 ques 41-50

Posted by Arushi :)) on Mar 01, 2014; 5:16pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-ECOM-2010-ques-41-50-tp7584970p7584978.html

Thanks kangkan..:)
hi ron
for these questions u should be having knowledge of ginni coefficient & measures of central tendency
For ques 42
for finding out ginni coefficient we have to take absolute deviation of incomes pairwise , i.e difference of each term with the other , add them up. and then we divide it by 2*mean income*n^2
example for D1
consider red people
deviation would be(absolute)
1-2 = 1,
1-3 = 2
1-4 = 3
then for blue people : 2-1=1 ,2-3=1, 2-4=2
then for green, 3-1=2 , 3-2=1, 3-4=1
then for yellow 4-1=3, 4-2=2, 4-3=1
next we have to add all these deviations and divide by 2n^2* mean income
mean income is 10/4=2.5
n^2= 16
n sum of deviations is 20
so ginni coeff would be 0.5
 the no. of people n incomes are same in country 2 .. thus G1= G2
then option c & d ruled out
only comparison between country 4 & 6 is left
coming to country 6
the sum of deviations is 20
but there are 5 people of each kind so we will multiply it by 5 = 100.
then mean income is 50/20= 2.5
and n^2= 400
so G6 would be 0.1
and lastly for country 4
calculating will give sum of deviations as 28
n^2 = 16
mean income = 2.5
G4= 0.7
G4>G6
Hence option b