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Excel: Lorenz Curve and Gini Coefficient - Full Tutorial
Рет қаралды 34,541
4 жыл бұрынThis video tutorial shows, how to draw the Lorenz Curve in Microsoft Excel and afterwards, it's shown how to calculate the Gini Coefficient.
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0:12 Presenting the Lorenz/Gini Case
Our data set is 5 regions with population and income for each. If your data is in absolute numbers, you need to have them in %. We store the data in our Excel sheet.
0:45 Calculating the income to population share
We divide the percentage of income by the percentage of population. A high number means a high income per capita for that region and similarly a low number means a low income per capita for the region. Finally sort the data from the smallest to the biggest, giving us the poorest region first.
1:45 Calculating the cumulative population and income
Calculate the cumulative population and income.
2:29 Draw the Lorenz curve in Excel
Mark the data, click Scatter, click Scatter with Smooth Lines and Markers. This gives you the raw Lorenz curve.
2:41 Fine tuning our Lorenz curve
Fix the max of the axis. Have the units in 10% increments. Make a chart title. Give the Lorenz curve a name. Axis titles.
4:10 Make an equality curve
This is how the Lorenz curve looks like, if everyone had the same income (= the regions are all equal).
5:01 Calculating the Gini coefficient
The gini coefficient is a statistical measure, that represents the income inequality withing a group of people (e.g. a nation, a region etc.).
5:22 Calculating the area under the Lorenz curve
6:44 Calculating the area between the inequality curve and the Lorenz curve
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#excel #statistics
@diegocaicedo36 3 жыл бұрын
Great explanation, love the simplicity and clarity, thanks
@andersjensenorg 3 жыл бұрын
Hey Diego. Thank you - nice that you took your time to comment :) Kind regards, Anders
@MarioGiordano96 3 жыл бұрын
Thank you very much for the amazing content! Really well explained.
@andersjensenorg 3 жыл бұрын
Hey Mario. Thanks a lot 😊 I forgot about this video. Have a great week. Kind regards, Anders
@gauravbansal6940 4 ай бұрын
Hi Andres, thanks for the great explanation. I followed your instructions but I am stuck at a point. I am trying to create the equality line but when I edit graph data, the pop-up box (at 04:45) asks only for 'series name' and 'series values' instead of separate sections for 'series x value' and 'series y values'. What can I do?
@andersjensenorg 4 ай бұрын
Thanks for writing 😊 I'm getting more than 50 messages daily. While I read all of them, I can’t reply to everyone 😔 But I’ve created an RPA/Automation community where we’re 12,000+ RPA Developers helping each other with solutions and our careers. Here’s the video on how to join (the invitation link is in the video description): kzfaq.info/get/bejne/rr12rZCEnpy8d6M.html Kind regards, Anders
@bentsusdiary 3 жыл бұрын
Thank you so much for your wonderful tutorial. It's very informative and easy to digest. :-)
@andersjensenorg 2 жыл бұрын
You're very welcome, ベンツ Bentsu's diary - your support helps me a lot 😍
@Eridingle 3 жыл бұрын
thank you so much!! this helped me immensely!
@andersjensenorg 3 жыл бұрын
Hey Eridingle. Thanks a lot for letting me know 😊 Kind regards, Anders
@Caniballe 3 жыл бұрын
Perfect! That´ll help a lot!
@andersjensenorg 3 жыл бұрын
Thank you, Paulo 🙂👍
@Silvertestrun Жыл бұрын
Ty
@andersjensenorg Жыл бұрын
YW 😊
@claudiacampos20 2 жыл бұрын
Thank you!
@andersjensenorg 2 жыл бұрын
Hey Claudia, you're very welcome :) Kind regards, Anders
@nikosioannou6859 3 жыл бұрын
my friend thank you for this great video. I only have one question: where did you get this data from, I mean the data where you based your calculations, the starting data of population and income. Is it for a specific country, which source did you use?
@andersjensenorg 3 жыл бұрын
Thank you, Nikos!! Great question, and no it was just random data :) Kind regards, Anders
@nikosioannou6859 3 жыл бұрын
@@andersjensenorg ok I see, thank you. I was wondering if you could help me with the following: I am doing a project for school and I have also used random data to calculate the Gino coefficient, and my teacher wants me to justify the validity of this data. Do you have any idea for how I could do that? Basically I have to show that my data is realistic and not abnormal. How could I show that my data is valid?
@sheistyshiney 3 жыл бұрын
thx for the great video. if possible could you provide citations or the source for the calculations?
@andersjensenorg 3 жыл бұрын
Hey shastock. Thank you. Yeah for sure, check this: towardsdatascience.com/clearly-explained-gini-coefficient-and-lorenz-curve-fe6f5dcdc07 Kind regards, Anders
@sheistyshiney 3 жыл бұрын
@@andersjensenorg thx for the anwser and the fastest replay ever :D
@sen6114 6 ай бұрын
hi Anders, I am using raw numbers instead of % of income and population. what do i do?!
@andersjensenorg 6 ай бұрын
Thanks for writing 😊 I'm getting more than 50 messages daily. While I read all of them, I can’t reply to everyone 😔 But I’ve created an RPA/Automation community where we’re 11,000+ RPA Developers helping each other with solutions and our careers. Here’s the video on how to join (the invitation link is in the video description): kzfaq.info/get/bejne/rr12rZCEnpy8d6M.html Kind regards, Anders
@aliankhan8429 3 жыл бұрын
sir if i want to calculate gini coefficient of a country from 1990-2019 yearly then kindly if you could guide me about which variables data should i take.
@andersjensenorg 3 жыл бұрын
Hey Alian. Thanks for the question. At the moment, I’m on paternity leave, meaning I don’t produce videos and solve problems until the 23rd of August. Feel free to post the problem at my Discord, where many bright automation minds are gathered: kzfaq.info/love/Pdtz4gd_iYebJFYq9N8pWAcommunity?lb=UgxD1Qe9lWKL1I7HyAJ4AaABCQ Kind regards, Anders
@zarccos 3 жыл бұрын
Thanks for your video. May be can you help me. Could you explain the differences between this two formulas for gini calculation: www.paho.org/English/SHA/be_v22n1-Gini.htm and Brown formula: www.statsdirect.com/help/nonparametric_methods/gini_coefficient.htm) / transportgeography.org/contents/methods/gini- coefficient /. What kind of method could be better if you have a list of countries population and global income by country. Thanks in advance
@andersjensenorg 3 жыл бұрын
Hey Maurici. I honestly don't know. I made the videos when I studied economics, because my fellow students had problems with it. Now I moved into IT (with my Eco background) and I'm not touching statistic much. Sorry. Kind regards, Anders
@zarccos 3 жыл бұрын
@@andersjensenorg Thanks a lot Anders !
@dinaralixie Жыл бұрын
мы с соней ничего не поняли если что мы устали
@andersjensenorg Жыл бұрын
I dont understand? 🙂
Leila Gharani
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