Reza Pourmousa - Department of Statistics, Faculty of Mathematics ~and Computer Shahid Bahonar University of Kerman Kerman, Iran

In most statistical analysis, inequality or extent of variation in income isrepresented in terms of certain summary measures. But some authors arguedthat the concept of inequality is vague and thus cannot be measured as anexact concept. Therefore, fuzzy set theory provides naturally a useful toolfor such circumstances. In this paper we have introduced a real-valued fuzzymethod of illustrating the measures of income inequality in truncated randomvariables based on the case where the conditional events are vague. Toguarantee certain relevant properties of these measures, we first selectedthree main families of measures and obtained their closed formulas, thenused two simulated and real data set to illustrate the usefulness of derivedresults.

Measures of income inequality, Gini index, Fuzzy event, membership function, Truncated distribution