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.