What does Gini index mean?

What does Gini index mean?

The Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. A Gini index of zero represents perfect equality and 100, perfect inequality. …

What is a good Gini index score?

It is influenced by the distribution of income between people. Gini index < 0.2 represents perfect income equality, 0.2–0.3 relative equality, 0.3–0.4 adequate equality, 0.4–0.5 big income gap, and above 0.5 represents severe income gap.

What is the Gini coefficient used for?

“The Gini coefficient provides an index to measure inequality,” says Antonio Cabrales, a professor of economics at University College London. It is a way of comparing how distribution of income in a society compares with a similar society in which everyone earned exactly the same amount.

How is Gini ratio calculated?

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.

Is a high Gini Index good?

A higher Gini index indicates greater inequality, with high-income individuals receiving much larger percentages of the total income of the population. Because of data and other limitations, the Gini index may overstate income inequality and can obscure important information about income distribution.

What does a low Gini Index mean?

The Gini coefficient is the most well-known measure of income inequality. A Gini coefficient of zero means there is an equal distribution of income, whereas a number closer to one indicates greater inequality. The lower the Gini coefficient, the more equal the society is said to be.

What is information gain and Gini index?

Summary: The Gini Index is calculated by subtracting the sum of the squared probabilities of each class from one. It favors larger partitions. Information Gain multiplies the probability of the class times the log (base=2) of that class probability. Information Gain favors smaller partitions with many distinct values.

How is Gini value calculated?

Is a high Gini index good?

What is Gini index it is a type of index structure?

Gini index or Gini impurity measures the degree or probability of a particular variable being wrongly classified when it is randomly chosen. A Gini Index of 0.5 denotes equally distributed elements into some classes.

What does the Gini index represent?

The Gini index is a simple measure of the distribution of income across income percentiles in a population. A higher Gini index indicates greater inequality, with high income individuals receiving much larger percentages of the total income of the population.

Which country has the highest Gini coefficient?

According to their individual focused method, in the 108 countries they studied, South Africa had the world’s highest Gini coefficient at 0.62, Malaysia had Asia’s highest Gini coefficient at 0.5, Brazil the highest at 0.57 in Latin America and Caribbean region, and Turkey the highest at 0.5 in OECD countries.

How does the Gini index work?

The Gini index is often represented graphically through the Lorenz curve , which shows income (or wealth) distribution by plotting the population percentile by income on the horizontal axis and cumulative income on the vertical axis.

What does Gini stand for?

GINI stands for GPS/INS Integration (navigation software) Suggest new definition. This definition appears rarely and is found in the following Acronym Finder categories: Information technology (IT) and computers. Science, medicine, engineering, etc.