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# Differential Proportions watch

1. In a large population, the proportion with income between x and x+dx is f(x) dx. Express the mean (average) income,,as an integral, assuming that any positive income is possible.
Let p=F(x) be the proportion of the population with income less than x, and G(x) be the mean (average) income earned by people with income less than x. Further, let θ(p) be the proportion of the total income which is earned by people with income less than x as a function of the proportion p of the population which has income less than x. Express F(x) and G(x) as integrals and thence derive an expression for θ(p).

I have so far concluded that:

However, I am struggling to come up with an expression for θ(p). Any help?
2. (Original post by newblood)
(..)
Before answering any questions, I disagree with

Think about what you're calculating with that.

represents the proportion of the population with an income between and . So what would integrating this from , give you?
3. (Original post by Phichi)
Before answering any questions, I disagree with

Think about what you're calculating with that.
Ah sorry, I seem to have mislaid an x while latexing it up. Let me edit the OP. Is that correct now?
4. (Original post by newblood)
Ah sorry, I seem to have mislaid an x while latexing it up. Let me edit the OP. Is that correct now?
Perfect. What are your thoughts for , using the information from the question, so we can see what exactly you're stuck on. Which bit has got you stumped?
5. (Original post by Phichi)
Perfect. What are your thoughts for , using the information from the question, so we can see what exactly you're stuck on. Which bit has got you stumped?
To be honest Im finding it quite hard to interpret what represents from the slightly long definition given, which in turn is why I am struggling to formulate it.
6. (Original post by newblood)
To be honest Im finding it quite hard to interpret what represents from the slightly long definition given, which in turn is why I am struggling to formulate it.
I have to agree the wording is some what ambiguous.

So, 'Further, let θ(p) be the proportion of the total income which is earned by people with income less than x as a function of the proportion p of the population which has income less than x'.

I think you're simply finding the proportion of the total income due to the people with income less than x (p).

So lets say, 100 people have income less than x, and the sum of all the incomes for these 100 people is £10.

The total income of all N of the population is say, £30.

This would lead the proportion of the income of earners below x, to the total income of the entire population to be

Could you go from there?

The real problem solving is really just how to represent the total income of the people of income less than x.
7. (Original post by Phichi)
I have to agree the wording is some what ambiguous.

So, 'Further, let θ(p) be the proportion of the total income which is earned by people with income less than x as a function of the proportion p of the population which has income less than x'.

I think you're simply finding the proportion of the total income due to the people with income less than x (p).

So lets say, 100 people have income less than x, and the sum of all the incomes for these 100 people is £10.

The total income of all N of the population is say, £30.

This would lead the proportion of the income of earners below x, to the total income of the entire population to be

Could you go from there?
But how can we work out the total income of the population using our functions?
8. (Original post by newblood)
But how can we work out the total income of the population using our functions?
Well, if you had a total income of £1000, spread amongst 50 people, the average is

So if you were given the fact that a population had N people, and an average income of say, A, then the total is just NA.

p is the proportion of people with income less than x, if given a population of N people, this equates to NP people with income less than x.
9. (Original post by Phichi)
Well, if you had a total income of £1000, spread amongst 50 people, the average is

So if you were given the fact that a population had N people, and an average income of say, A, then the total is just NA.

p is the proportion of people with income less than x, if given a population of N people, this equates to NP people with income less than x.
But were not told how many people are in the population. Atleast I cant see how to work it out
10. (Original post by newblood)
But were not told how many people are in the population. Atleast I cant see how to work it out
Assume the population is just N.

For the first question, finding an expression for

I'd go about it like so:

Let the total income of the population be represented by

This gives you the total income. is the number of people with income lying between x and x+dx.

Thus gives you the sum of their incomes. Integrating from 0 to infinity gives you the total income.

The average is just the total divided by the number of people, N.

is just a proportion, you should have N in both your numerator and denominator, which will cancel.

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Updated: December 30, 2014
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