In a society with 240,000 households, 10,000 households earn $4 each, 4,000 households earn $2 each, 10,000 households earn $10 each, and the rest earn $1 each.What is the income share of the third quintile? (Not the cumulative income share, just the share of that quintile.) Please write down the answer with two decimal points in percentage form without the % sign. XX.xx, NOT XX.xx%
Question
In a society with 240,000 households, 10,000 households earn 2 each, 10,000 households earn 1 each.What is the income share of the third quintile? (Not the cumulative income share, just the share of that quintile.) Please write down the answer with two decimal points in percentage form without the % sign. XX.xx, NOT XX.xx%
Solution
To find the income share of the third quintile, we first need to calculate the total income of the society and the income of each quintile.
- Calculate the total income of the society:
- 10,000 households earn 4 = $40,000
- 4,000 households earn 2 = $8,000
- 10,000 households earn 10 = $100,000
- The rest of the households (240,000 - 10,000 - 4,000 - 10,000 = 216,000 households) earn 1 = $216,000
- The total income of the society is
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