Which one of the following statements is incorrect with regard to a Lorenz Curve?
A. It always starts at (0,0) and ends at (1,1).
B. It is constructed on the basis of cumulative frequencies.
C. The ratio of the area between the line of perfect equality and the observed Lorenz curve to the area between the line of perfect equality and the line of perfect inequality is expressed as ‘The Ginni Coefficient’.
D. The Lorenz curve cannot rise above the line of perfect equality.
Answer:B
Which one of the following statements is incorrect with regard to a Lorenz Curve?
A. It always starts at (0,0) and ends at (1,1). B. It is constructed on the basis of cumulative frequencies. C. The ratio of the area between the line of perfect equality and the observed Lorenz curve to the area between the line of perfect equality and the line of perfect inequality is expressed as ‘The Ginni Coefficient’. D. The Lorenz curve cannot rise above the line of perfect equality.
Explanation: Q.30. ‘Standard error’ of the sample of success can be determined by the following formula: