GINI-Coefficient, GOZINTO-Graph and Option Prices
Josef Bohm, ACDCA & DERIVE User Group, nojo.boehm@pgv.at

GINI-Coefficient together with LORENZ-curve and GOZINTO-Graphs are economic
applications of secondary school mathematics.  They are part of the curriculum
in Austria's Colleges for Business Administration (= Handelsakademie).  Basic
knowledge about stocks and options became important during the last years.
Treating these issues are easy using technology.

The GOZINTO-Graph or GOZINTO-Chart is a pictorial representation that shows how
the elements required to build a product fit together.  This is often the first
step for several planning functions especially for material requirements
planning, for time and manpower resources planning, for production cost, etc.

This chart gives the input for building the production matrix.  Easy to
understand, and supported by technology, easy to perform matrix calculations,
lead to the results.

Students can easily be inspired to design own tasks.  Examples of students'
works will be presented.

The GINI-Coefficient is a means for measuring the income distribution - and
other distributions - of a nation's population.  It is commonly used as a
measure of inequality of income or wealth.

This sounds a little bit complicated but in fact it is an easy to perform
application of integration based on the modelling of the so called
LORENZ-Curve.  We should be happy to find an application of definite integral
which is not only calculation of the area between two curves.

Calculation of option prices is based on stock data (average rate of return,
volatility, and other statistics - all well known in school). We will
demonstrate the binomial model and the extend to the famous Black-Scholes
formula.