The Problem below is 3 parts and I don't know how to start any of the parts. For part 1 do I need to plug in values for x or mA and just try to solve the integration from 0 to mA?
Imagine a country where everyone works for the government and the government has a finite amount of money to give out in annual salaries (total of I dollars). The entire population is P, but not all of these people work (e.g. children, elderly, disabled, etc.)
Let A be the average income of the citizens. The highest possible income will be mA for some constant m.
For each income level x, from 0 to mA, let f(x) be the fraction of the population that earns no more than x dollars per year.
mA
1. Show that A = ∫ xf′(x)dx
0
(We will assume that f(x) is differentiable)
Let D be the difference between the average income and largest income. i.e. D = mA − A
mA
2. show that D = ∫ f(x)dx
0
3. If the each income level has the same number of people, we will that there is a fair distribution of income. Show that in this case, f(x) is linear
i.e. f(x) = ax + b for some constants a and b
hint: show that f′(x) is a constant
Imagine a country where everyone works for the government and the government has a finite amount of money to give out in annual salaries (total of I dollars). The entire population is P, but not all of these people work (e.g. children, elderly, disabled, etc.)
Let A be the average income of the citizens. The highest possible income will be mA for some constant m.
For each income level x, from 0 to mA, let f(x) be the fraction of the population that earns no more than x dollars per year.
mA
1. Show that A = ∫ xf′(x)dx
0
(We will assume that f(x) is differentiable)
Let D be the difference between the average income and largest income. i.e. D = mA − A
mA
2. show that D = ∫ f(x)dx
0
3. If the each income level has the same number of people, we will that there is a fair distribution of income. Show that in this case, f(x) is linear
i.e. f(x) = ax + b for some constants a and b
hint: show that f′(x) is a constant