Ans. The procedure involves a set of nine steps.
1. Calculate class Midpoints to obtainCol.2 of Table
2. Calculate the estimated total income of employees in each c ss by multiplying the midpoint of the class by the frequency in the class. Thus obtain Col. (4) of Table
3. Express frequency in each class as a percentage (%) of total frequency. Thus, obtain Col. (5) of Table
4. Express total income of each class as a percentage (%) of the total income of all classes together. Thus obtained Col. (6) of Table
5. Prepare less than cumulative frequency and Cumulative income table
6. Col. (2) Table 6.5 shows the cumulative frequency of employees.
7. Col. (3) Table 6.5 shows the cumulative income going to these persons.
8. Draw a line joining Co-ordinate(0,0) with (100,100). This is called the line of equal distribution.
9. Plot the cumulative percentages of employees on the horizontal axis and cumulative income on the vertical axis.