Question

How do you do this question?

Answer 1

a. 42%

b. 16%

Explanation:

a. According to the curve, the bottom 80% of families has about 58% of the income, so the top 20% has about 42%.

b. The bottom 60% of families have about 32% of the income, and the bottom 40% of families have about 16% of the income. So the third quintile has about 32% − 16% = 16%.