Question

Assuming that the Gini coefficient for Egypt is 0.403 and the Gini coefficient for Australia is 0.404, it is possible to conclude that both Egypt and Australia have: a. virtually the same number of households in absolute poverty. b. virtually the same percentage of households in absolute poverty. c. virtually the same level of the Human Development Index. d. none of the above.

Answer 1

The correct answer is . d. none of the above.

Step-by-step explanation:

Gini coefficient is a measure of the inequality devised by the Italian statistician Corrado Gini. It is normally used to measure income inequality, within a country, but it can be used to measure any form of unequal distribution. The Gini coefficient is a number between 0 and 1, where 0 corresponds to perfect equality (all have the same income) and where the value 1 corresponds to perfect inequality (one person has all income and none others ). The Gini index is the Gini coefficient expressed in reference to a maximum of 100, instead of 1, and is equal to the Gini coefficient multiplied by 100. A variation of two cents of the Gini coefficient (or two units of the index) is equivalent to a distribution of 7% of wealth from the poorest sector of the population (below the median) to the richest (above the median).