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Testing Homogeneity of Gini Indices Against Simple-Ordered Alternative
Authors:Pooja Bansal  Kalpana K. Mahajan
Affiliation:Department of Statistics , Panjab University , Chandigarh, India
Abstract:Gini index is one of the most popular indices employed for measuring inequality in income and wealth. In this article, we propose a multi-sample test for testing Gini indices against simple-ordered alternatives. The exact critical points through simulation were computed for the proposed test in case of two-parameter exponential distribution; however, the proposed test can be applied even in case of other distributions like Pareto, Weibull, etc. Construction of simultaneous one-sided confidence intervals (SOCIs) was proposed along with an illustration. Power of the test is computed and some power comparisons are also made.
Keywords:Critical point computation  Gini index  Multi-sample testing  Ordered alternative  Simultaneous confidence intervals  Statistical simulation
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