Hindawi Publishing Corporation
ISRN Probability and Statistics
Volume 2013, Article ID 659580, 14 pages
http://dx.doi.org/10.1155/2013/659580
Research Article
Estimates of Inequality Indices Based on Simple Random,
Ranked Set, and Systematic Sampling
Pooja Bansal, Sangeeta Arora, and Kalpana K. Mahajan
Department of Statistics, Panjab University, Chandigarh 160014, India
Correspondence should be addressed to Sangeeta Arora; sarora131@gmail.com
Received 16 June 2013; Accepted 2 August 2013
Academic Editors: X. Dang and S. Lototsky
Copyright © 2013 Pooja Bansal et al. Tis is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Gini index, Bonferroni index, and Absolute Lorenz index are some popular indices of inequality showing diferent features of
inequality measurement. In general simple random sampling procedure is commonly used to estimate the inequality indices and
their related inference. Te key condition that the samples must be drawn via simple random sampling procedure though makes
calculations much simpler but this assumption is ofen violated in practice as the data does not always yield simple random sample.
Nonsimple random samples like Ranked set sampling or stratifed sampling are gaining popularity for estimating these indices.
Te purpose of the present paper is to compare the efciency of simple random sample estimates of inequality indices with their
nonsimple random counterparts. Monte Carlo simulation technique is applied to get the results for some specifc distributions.
1. Introduction
Lorenz curve [1] and the associated Gini index [2] are one
of the most popular and frequently used tools to measure
income inequality. Certain other variants of Lorenz curve,
namely, Generalized Lorenz curve [3], Absolute Lorenz curve
[4], Bonferroni curve [5], and Comic curves [3, 6] and
associated inequality indices, that is, Generalized Lorenz
index, Absolute Lorenz index, Bonferroni index, and Comic
index, are some of the popular alternatives to Gini index
used to study certain specialized features of inequality. In
practice, mostly the simple random sampling procedure is
used to derive the statistical inference or obtaining the sample
estimates of these inequality measures. Te key condition
that the samples must be drawn via simple random sampling
procedure though makes calculations much simpler but this
assumption is ofen violated in practice as the data does not
always yield simple random sample. For example, in India
the socioeconomic data collected by the National Sample
Survey Organization (NSSO) is not drawn through simple
random sampling but follows two-stage stratifed sampling
techniques. Also in the United States, commonly used income
and earnings data, such as the Current Population Survey
(CPS) and the Panel Study of Income Dynamics (PSID),
are all multistage random samples, where simple random
sampling is not the only method applied at each stage. One
may quote stratifed sampling, cluster sampling, multistage
cluster sampling, and so forth, as alternatives to simple
random sampling while estimating inequality indices [7].
Besides, these available traditional sampling methods,
the method of Ranked set sampling (RSS), have also gained
popularity in the literature for estimating parameters like
population mean and variance and its associated statistical
inference. Tis RSS method of sampling is proved to be
more efcient than simple random sampling [8]. Tus, the
RSS technique may also be extended to obtain the sample
estimates of these inequality measures, and it will be extended
to compare the efciency of RSS with simple random and
other sampling estimates as applied to inequality measures.
[9] have given the comparison of ranked set sample estimate
of Gini index with simple random sampling for a non-
standard Lorenz curve equation using simulation technique
and are not true in general as no standard distributions are
considered.
Te purpose of the present work is to compare the
nonsimple random estimates of the inequality measures