I\'m pretty sure I have the first two right. Could someone please explain how to
ID: 1090733 • Letter: I
Question
I'm pretty sure I have the first two right. Could someone please explain how to solve the last one?
The data in the corresponding table characterizes the income distribution for a country. What percentage of the total population is categorized as belonging to the 2nd quintile? Number 13 % What percentage of the total income for the country is earned by the 3rd quintile? Number 17% What is he cumulative share of income earned by the poorest 80% of the population? Income Category Share of Income (%) Cumulative Share of Income 1st Quintile 5.0 ? 2nd Quintile 13.0 18.0 3rd Quintile ? 35.0 4th Quintile 25.0 ? 5 Quintile 40.0 ?Explanation / Answer
Considering total population as 100% and 100 percent of the population was broken into 5 Quintile, the solution can be solved. This is how income distribution was broken in 5 quantiles.
Considering all the quantiles have equal population, each quantile has 20% of population (100% divided by 5).
So, ultimately the poorest 80% of the population would be the sum of the incomes of first four quantiles. This is due to the fact that quantile 5 has the highest income share and cannot be considered poor population (subject to the condition that each quantile has equal population).
So poorest 80% of population would have a cummulative income of 60%. Refer the cummulative income table at the begining of the solution for details.
Share of income cummulative share of income 5 - 13 18 17 35 25 60 40 100