Example of Gini Index. t1. Let's start by calculating the Gini Index for 'Past Trend'. P(Past Trend=Positive): 6/10. If you want a description of each video in our Excel course, then click on any tab. Gini Index – This video shows how to use Excel to compute a complex Mar 28, 2018 Get the data in the online Spreadsheet, or » Download Excel file. What is gini? Gini measures inequality: How large are the income differences within his calculations published by OECD here: Income inequality since 1820. Jan 22, 2013 How an equation cooked up by Mussolini's numbers guy came to define how The Gini Coefficient, which can measure inequality in any set of Smeeding sent me an Excel spreadsheet with measurements that dig deeper. Gini Coefficient Formula – Example #1 Let us take a simple example of a population of 20 people to understand the concept of the Gini coefficient. As per the given information, first 5 people made $50 per month per person, the next 10 people made $100 per month per person and the last 5 people made $300 per month per person.
Hello all, does anyone have any ideas on how the formula for the GINI coefficient could be expressed in Excel ΣiΣj(yi-yj) In the formula, y refers to income and both i and j refer to households. Thus for instance if there were two households then to get ΣiΣj(yi-yj) first set i equal to one then do the single sum across the js. Then set i = 2 and do the single sum across the js. The very last step of our calculation of the Gini is to divide by the area of the triangle which is ½. So: Area of Trapezoid / (1/2) = 2*Height*(Base at top + Base at bottom).
Feb 24, 2010 One way to measure income equality is the Gini Coefficient. Area A = 0.095 ( from calculating area B - one triangle and 2 trapezoids - and
The Gini formula is often written as: G=SUM(i=1 to n) SUM(j=1 to n) ABS(Datapoints(i)-Datapoints(j)) / (n*n*Average(Datapoints)) where Datapoints is the range of data and n is the number of points in Datapoints. A Bias Correction factor of n/(n-1) is usually applied. Calculating Gini Coefficients using Excel. Example 1: Draw the Lorenz curve for the data in range A4:A23 in Figure 1. Figure 1 – Data for Lorenz Curve and Gini Index. The first thing we need to do is sort the data in ascending order. This is done in column B, for example by using the Real Statistics array formula =QSORT(A4:A23) in range B4:B23. The Gini Excel coefficient value can range from 0 to 1 and is half the relative mean difference (RMD) . is a consistent estimator of the population Gini Excel coefficient, but is generally unbiased (except when the population mean is known). Below is a picture of how to use excel to calculate the necessary values in order to get the Gini Coeffecient. Once you get the total value, the Gini Coefficient is calculated as $1-\text{total value}$, which in this case is $1-0.733=0.267$ rounded to the nearest thousandth. The Gini Coefficient or Gini Index measures the inequality among the values of a variable. Higher the value of an index, more dispersed is the data. Alternatively, the Gini coefficient can also be calculated as the half of the relative mean absolute difference.
May 21, 2011 A Bias Correction factor of n/(n-1) is usually applied. Calculating Gini Coefficients using Excel. The Gini Formula can be written as an Excel array Guide to Gini Coefficient Formula. Here we learn how to calculate Gini coefficient using its formula along with practical examples and excel template. Step Three --Mean income will appear in cell B13; the Gini coefficient will be reported in cell L29. To see a Lorenz Curve of the distribution, click below on Apr 24, 2017 One of the fastest ways to calculate Gini Coefficient for any data set is to use excel to calculate the necessary values in order to get the Gini