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Question

Given below is the Lorenz curve representing the percentage revenues of car manufacturing companies worldwide.




The top 20 percentage of the companies generate what percentage of revenue?

A
30%
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B
40%
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C
50%
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D
60%
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Solution

The correct option is D 60%
From the Lorenz curve, the bottom 80% of the companies generate 40% of the revenue. Hence, the top 20% of the companies generate 60% of the revenue.

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