What is the purpose of the Gini coefficient?

The Gini coefficient is primarily used to measure statistical dispersion, especially in the context of economic inequality. It's a numerical representation that quantifies the distribution of income or wealth within a population. A Gini coefficient of 0 indicates perfect equality (everyone has the same income), while a coefficient of 1 signifies perfect inequality (one person has all the income, and everyone else has none). This makes it an important tool for policymakers and economists who analyze inequality, allowing them to assess how wealth or income is distributed across different segments of society.

In contrast to the other options, the Gini coefficient does not relate to the evaluation of predictive model accuracy, the rate of data loss, or the categorization of data types. The focus of the Gini coefficient is specifically on assessing inequality, making it a vital measure in social sciences and economics rather than in data analysis or predictive modeling contexts.