Re: DSE 2012 paper discussion-Please join

Posted by sarawagisruti on Jun 12, 2014; 11:45am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2012-paper-discussion-Please-join-tp7590218p7592490.html

Hi Akshay,

Can you please explain Gini Coefficient in general.. I read it but could not understand a word. Also i tried using the formula in this question but could not solve it.. could you please explain it once

Consider a society in which half the population earns
100 rupees per day and the other half earns 200 rupees per day. The Gini
coeffcient of inequality for this society is given by
(a) 1/2
(b) 1/3
(c) 1/6
(d) 1/8

An econometrician uses data from the Consumer Expen-
diture Survey conducted by the National Sample Survey Organization for the
years 1991 and 2001 and plots the cumulative distribution function for real
consumer expenditure per capita for these years. He nds that cumulative
distribution function for 2001 is everywhere to the right of that for 1991.
Consider the following,
Conclusion 1: The Gini coeffcient for 2001 is higher than for 1991
Conclusion 2: Consumption expenditure of every individual has increased in
2001 compared to 1991
Conclusion 3: Real consumption expenditure per capita has increased in 2001
compared to 1991
Which of the above conclusions are correct
(a) Only (iii) is correct
(b) (i) and (iii) are correct
(c) (ii) and (iii) are correct
(d) None of the conclusions is correct