Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by the functions f(z)= z+ 10 and 9(z)=0.542³5 +0.46 (a) What percent of the total income do the richest 20% of bankers receive? Note: Round off to two decimal places if necessary (b) Compute for the Gini index of f(z) and g(z). What can be implied from the Gini indices of f(z) and g(z)?
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- Suppose there are two different neighborhoods in a city. One neighborhood has 400 Black residents and 600 white residents. The other neighborhood has 800 Black residents and 400 white residents. What is the Dissimilarity Index (DI) equal to?Assume that you want to decide whether Country A or Country B to live You have only information about cumulative percentage of income distribution functions of (14)/(15)x^(2)+(1)/(15)x for country A and (11)/(12)x^(2)+(1)/(12)x for country B. A)Which country do you prefer and why? B)Prove your decision numerically,graphically, and with respect to relevant economics theory?Q-3 Are the following statement true of false ? You need to provide an aurgument for and against it why it is so.
- Aliyah is preparing to expand her IT consulting company. The current market rate for IT professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that costs $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $15,000 per year. The number of clients Aliyah can take on depends on the number of workers she hires as shown in the accompanying table. What is the marginal cost and marginal benefit of hiring each worker? Using the Rational Rule to maximize her economic surplus, how many workers should Aliyah hire? Number of workers Clients per year 0 0 1 11 2 20 3 27 4 32Wage W5 W4 W3 W₂ W₁ Q₂ Q3 Q 4 MFC S D = MRP Quantity of Labor Larry's Lumber Mill sells lumber in a perfectly competitive product market. However, Larry's Lumber Mill is the only employer of labor in the small community where it is located. The labor market is depicted by the graph above. (a) Using the labels from the graph above, identify each of the following. (i) The optimal quantity of labor Larry's Lumber Mill will hire (ii) The wage rate Larry's Lumber Mill will pay (b) Using the labels from the graph above, identify the number of workers Larry's Lumber Mill would hire if the labor market were perfectly competitive. (c) Because of growing housing demand, the price of lumber increases. What will happen to each of the following? (i) Larry's Lumber Mill's demand for labor. Explain. (ii) The supply of laborYou are a brand analyst working for a large multinational retail organisation in South Africa. Theorganisation specialises in premium products. You have been provided with the followingstatement: “According to the World Bank, South Africa remains a dual economy with one of thehighest inequality rates in the world, with a Gini Coefficient of 0.643.”The Board of Directors convened a special meeting to discuss the implications of the quote above.You are required to produce a brief on the statement above, specifically referring to theimplications it holds for the brand.You were able to locate the following graph denoting the Lorenz curve from which the Ginicoefficient was derived: Asnwer the following: • A good, understandable definition of the Gini Coefficient. Indicate the significance of theSouth African Gini coefficient in relation to Gini coefficient ranges associated with equaland unequal income distributions;
- You are a brand analyst working for a large multinational retail organisation in South Africa. Theorganisation specialises in premium products. You have been provided with the followingstatement: “According to the World Bank, South Africa remains a dual economy with one of thehighest inequality rates in the world, with a Gini Coefficient of 0.643.”The Board of Directors convened a special meeting to discuss the implications of the quote above.You are required to produce a brief on the statement above, specifically referring to theimplications it holds for the brand.You were able to locate the following graph denoting the Lorenz curve from which the Ginicoefficient was derived: Answer the following: 1.1) Explain the implications of a Gini Coefficient of 0.643 relating to the South Africaneconomy, retail sector and brand of the organisation. Derive practical examples from theLorenz curve to substantiate your explanation.You are a brand analyst working for a large multinational retail organisation in South Africa. Theorganisation specialises in premium products. You have been provided with the followingstatement: “According to the World Bank, South Africa remains a dual economy with one of thehighest inequality rates in the world, with a Gini Coefficient of 0.643.”The Board of Directors convened a special meeting to discuss the implications of the quote above.You are required to produce a brief on the statement above, specifically referring to theimplications it holds for the brand.You were able to locate the following graph denoting the Lorenz curve from which the Ginicoefficient was derived: Answer the following question: A discussion relating to the attributes that make the Gini coefficient a desirable means ofmeasurement.You are a brand analyst working for a large multinational retail organisation in South Africa. Theorganisation specialises in premium products. You have been provided with the followingstatement: “According to the World Bank, South Africa remains a dual economy with one of thehighest inequality rates in the world, with a Gini Coefficient of 0.643.”The Board of Directors convened a special meeting to discuss the implications of the quote above.You are required to produce a brief on the statement above, specifically referring to theimplications it holds for the brand.You were able to locate the following graph denoting the Lorenz curve from which the Ginicoefficient was derived: Answer the following question: Explain how the Gini coefficient is derived from the Lorenz curve by making use of thegraph provided;
- You have been hired as a business analyst for Seko, an information technology company. The manager of Seko estimates that the annual profit of the company, in millions of dollars, is given by P(x)=2 ln(2x+1)+2x-²-0.3 where z is the number of IT consultants (in hundreds) in its employ. 2 Instructions Your responsibilities under this company are: 1. To find the number of consultants the firm should hire so that its profit is maximized. 2. To find the maximum profit.Suppose workers can be divided into two groups: high and low skill workers. Let y be the number of years of college education of a worker. For workers in Group A (high skill workers) the cost of attaining an educational level y is CA(Y)=$25y; for workers in Group B (low skill workers) the cost of attaining an educational level y is CB(y)=$65y. Employees will be offered $350 if they have y ≥ y*, where y* is an educational threshold determined by the employer. They will be offered $50 if they have y y* zYou are a brand analyst working for a large multinational retail organisation in South Africa. The organisation specialises in premium products. You have been provided with the following statement: “According to the World Bank, South Africa remains a dual economy with one of the highest inequality rates in the world, with a Gini Coefficient of 0.643.” The Board of Directors convened a special meeting to discuss the implications of the quote above. You are required to produce a brief on the statement above, specifically referring to the implications it holds for the brand Explain the implications of a Gini Coefficient of 0.643 relating to the South African economy, retail sector and brand of the organisation. Derive practical examples from the Lorenz curve to substantiate your explanation.