One scale of the grid represents percentages and the other scale represents "more than" or "less than" values.

NUMftER OF FAMILIES

90,000,000

20,000,000

10,000,000

NUMftER OF FAMILIES RECEIVIN6 INCOMES OVER SPECIFIED AMOUNTS

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Rrdrawn from Advertising and Selling, January 1917

Number of Families Receiving Incomes Over Specified Amounts in the United States in 1916.

1. In reading the above chart the amount of the income is read by the scale at the

bottom of the diagram. The number of families is indicated by the scale at the left-hand side.

2. If you wish to learn how many families are receiving an income of $1,500 and upwards, it is shown by the point where the curve crosses the middle vertical ruling between the $1,000 and the $2,000 lines. This is found to be at 3,750.000 according to the scale at the left. There are, therefore, approximately 3,750,000 families that are receiving an annual income of $1,500. In the same way it is possible to estimate that there arc 5,150,000 families that are receiving an income of $1,200.

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GRAPHIC PRESENTATION

A Lorenz chart gives frequency distribution when both the variable and invariable quantities are reduced to percentages. The curve is plotted on a grid on which both the horizontal and the vertical scales represent 100%.

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0 5 10 15 20 25 30 35 40 45 50 Waqe ner Week ,in Dollars

A. Actual Wage Distribution of 381.- 575 Workers in the United States in 1917.