# What is the formula for the Gini coefficient?

## What is the formula for the Gini coefficient?

The Gini coefficient can be calculated using the formula: Gini Coefficient = A / (A + B), where A is the area above the Lorenz Curve and B is the area below the Lorenz Curve.

## How is Gini measured?

The Gini Index is a summary measure of income inequality. The Gini coefficient incorporates the detailed shares data into a single statistic, which summarizes the dispersion of income across the entire income distribution.

**How is Palma ratio calculated?**

The Palma ratio is calculated by dividing the richest 10% of the population’s share of gross national income (GNI) by the poorest 40%’s share.

**How do you calculate Gini coefficient on sheets?**

The Gini coefficient ranges from 0 (complete equality) to 1 (complete inequality). It is calculated by dividing the area between the Lorenz curve and the perfect equality line, by the total area underneath the perfect equality line.

### What Gini means?

Gini index. Short definition. The Gini index measures the extent to which the distribution of income or consumption among individuals or households within an economy deviates from a perfectly equal distribution. A Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.

### What does Palma ratio mean?

The Palma Ratio measures ratio of the richest 10% of the population’s share of national income divided by the poorest 40%’s share.

**What is the Palma?**

The Palma ratio is the share of all income received by the 10% people with highest disposable income divided by the share of all income received by the 40% people with the lowest disposable income. More.

**How is Gini impurity calculated?**

Information gain is calculated by multiplying the probability of a class by the log base 2 of that class probability. Gini impurity is calculated by subtracting the sum of the squared probabilities of each class from one.

#### Is Gini a coefficient?

The Gini coefficient is one of the most frequently used measures of economic inequality. The coefficient can take any values between 0 to 1 (or 0% to 100%). A coefficient of zero indicates a perfectly equal distribution of income or wealth.