The Gini Index serves as an invaluable tool in economics, particularly in gauging the degree of income distribution inequality. It has a range from 0, representing total equality, to 1, denoting absolute inequality. The Gini Index is determined through a comparison of the cumulative proportions of the population versus the cumulative proportions of the income they accrue, effectively quantifying income dispersion.
| Topic | Problem | Solution |
|---|---|---|
| None | A small startup has five employees with annual sa… | Step 1: First, we need to calculate the average income. It is given by the formula \[ \bar{x} = \fr… |