Statistics - Pareto ( Principle | Distribution )

Thomas Bayes


the Pareto principle or the “80-20 rule” corresponds to a Pareto probability distribution with shape log(5)/log(4) = 1.161.

See also: The 1 Percent Rule

Pareto originally used this distribution to describe the allocation of wealth among individuals since it seemed to show rather well the way that a larger portion of the wealth of any society is owned by a smaller percentage of the people in that society. ie 20% of the population controls 80% of the wealth.

Distribution Function

Math from - Page 32

function pareto(alpha){
  return function(){
    return 1 / Math.pow(Math.random(), 1 / alpha);

Documentation / Reference

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Thomas Bayes
Statistics - (Paretian|Power law) distribution

Paretian distributions have unstable means and a greater portion of extreme events. See also : ? Pareto_distribution
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Statistics / Probability - Distribution - (Function)

This section talks the term Distribution also knows as Probability distribution where you get: on the y axis, the probability on the x axis, the event They can be seen as the outcomes of a single...
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Viz - Pareto Chart

in Viz Pareto_chart

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