The Lorenz Curve?

Question

Can someone give me a detailed explanation of the Lorenz Curve, what it is, how it works and some example of it. Id be extremely greatful, im stalling on my project and need some help

Answer 1

An income distribution looks like
http://www.visualizingeconomics.com/2006/11/05/2005-us-income-distribution/
If you add all the income under the curve up to a point , for instance up to 60% of all households you get the 60% point on the x axis of the Lorenz curve. Doing this for all points is call the cumulative distribution function.
see for details http://en.wikipedia.org/wiki/Lorenz_curve