# Statistics - Pareto ( Principle | Distribution )

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

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 http://www.cse.wustl.edu/~jain/books/ftp/ch5f_slides.pdf - Page 32

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

## Documentation / Reference

Discover More
Statistics - (Paretian|Power law) distribution

Paretian distributions have unstable means and a greater portion of extreme events. See also : ? Pareto_distribution
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...
Viz - Pareto Chart

in Viz Pareto_chart