Respuesta :
The fifth quintile of Paddy's cousins' income distribution's share of income is 37.9%; and that is less than what the highest quintile of the US income distribution received in 2005 as a percentage of total income.
A Quintile is 1/5 or 20% of a whole population and should not be mistaken for a Quartile which is 1/4th or 25% of a population.
The lowest quintile is the first quintile of 1/5 and the highest quintile is the fifth quintile or 5/5.
Calculating the Quintile is a necessary step in this question, followed by calculating the percentage of total income that the highest or fifth quintile represents, and finally comparing those results to information on the highest quintile of the US income distribution in 2005.
Step 1: Group into 5 and order from lowest to highest.
[tex]8,000, 14,000, 22,000-[/tex] First Quintile
[tex]26,000, 38,000, 46,000 -[/tex] Second Quintile
[tex]52,000, 54,000, 62,000 -[/tex] Third Quintile
[tex]80,000, 92,000 96,000 -[/tex] Fourth Quintile
[tex]110,000, 118,000, 132,000 -[/tex]5th Quintile
Step 2: Calculate the 5th Quintile's total and divide it by the sum of Paddy's relatives' 15 earnings.
5th Quintile[tex]= 110000+118000+132000=[/tex]$360,000
[tex]8000+14000+22000+26000+38000+46000+80000+54000+62000+80000+92000+96000+110000+118000+132000=[/tex] $950,000
5th Quintile Percentage of Income for Paddy's Cousins= 360,000/950,000= 37.9%
Step 3:Look into the percentage of the United States' overall income that the 5th Quintile received in 2005.
Principles of Economics, Chapter 14 on Poverty and Economic Inequality, among other publications, conducted the survey and has already classified the Income of the United States from 1967-2015 into Five Quintiles, despite the fact that it is fairly difficult to obtain the total income for the US in 2005.
The 5th Quintile accounts for 50.4% of the overall income according to this study, which has also been estimated.
Therefore,
Paddy's Cousins' 5th Quintile Income Proportion= 37.9%
In 2005, the United States' 5th Quintile Income Proportion was recorded = 50.4%
The highest quintile of Paddy's Cousins' share of income is less than the highest quintile of the U.S. income distribution in 2005.
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