Math Problem Assignment Paper: Report of Gini Index

Report of Gini Index
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Question 4
Colorado has a lower Gini index of 0.4319 compared to Arizona’s 0.4400 coefficient. The lower the Gini coefficient the less the inequality. Hence, an indication that Colorado is more socio-economically equal than Arizona. The median household income in Arizona is approximately $50,255 with a population of about six million. Conversely, Colorado’s median income per a household is $60,629 with a five million population. The low household income in Arizona stipulates that more household members share less income compared to those in Colorado. Thus, an indication that there are more poor persons in Arizona than they are in Colorado (U. S Census, 2015).
According to the 2016 statistics, Arizona recorded 17.4% poverty rate. Though a decrease from the previous year’s 18.2%, the state ranks among the highest above the national poverty rate CITATION Cla16 \l 1033 (Caulfield, 2016). Reportedly, Colorado registered an approximate of 11.0% poverty rate (Centre for American Progress, 2017). Amicably, the two states share similar ratings on population demographics with each have a high percentage of the native Americans against other races. However, Colorado has a low unemployment rate of 3.9% against Arizona’s 6.1 % with higher education attainment being higher in Colorado (48%) than in Arizona (36.4%).
In Arizona, the automotive industry is a high income earning entity while Colorado boosts of its Food and beverages, Media and entertainment billions (Sola & Canal, 2016). Consequently, Colorado has an income flat tax rate of 4.63% while Arizona’s is a progressive one between the 2.59%-4.54%. High taxes would imply more revenue for the government hence, high expenditure on human development projects. Therefore, the outlined factors largely, exhibit the lower Gini index of Colorado state compared to Arizona state.
Question 5
As at 2015 statistics, the national average Gini coefficient of the U.S was at 0.39 CITATION OEC17 \l 1033 (OECD, 2017). Therefore, Colorado and Arizona state both exceed the national average. Colorado stands at 0.43 and Arizona at 0.44. This depicts that des...