It is a theoretical probability distribution. I have included two links from the internet which describe the distribution and some of its applications. Sometimes in statistics, we are more interested in the more extreme statistics rather than the average. For example, if we are studying the spread of a disease, perhaps the long distance that the disease can travel one time in 100 is more important than the average distance. Both the exponential and the Pareto distribution are used when the tail end probabilities (cumulative probability close to 1) are of interest. See related links.
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Pareto superior is a state (based on the Pareto criteria) in which one parameter is improved without causing a negative effect on a different parameter.
A state 'A' of the economy is said to be Pareto superior to another state 'B' if at least one person is better off in 'A' than in B' but none is worse off . If there is no transitive relationship between the points then we have Pareto non-comparability. If neither A is Pareto superior to B nor B superior to A then we have Pareto non-comparability for the states of economy.
Pareto's economic law of income distribution in society remains constant despite human efforts to change it.
Pareto's Law is the economic theory that 20% of the population earns 80% of the income.
20% of us do 80% of the work
The mode of the Pareto distribution is its lowest value.
To derive the mean of generalized Pareto distribution you must be good with numbers. You must be good in Calculus, Algebra and Statistics.
The total deviation from the mean for ANY distribution is always zero.
Divakar Sharma has written: 'On some estimators of the parameters of the Pareto distribution'
var(X) = (xm/a - 1)2 a/a-2 . If a < or equal to 2, the variance does not exist.
The moment generating function for any real valued probability distribution is the expected value of e^tX provided that the expectation exists.For the Type I Pareto distribution with tail index a, this isa*[-x(m)t)^a*Gamma[-a, -x(m)t)] for t < 0, where x(m) is the scale parameter and represents the least possible positive value of X.
Easy. The mean deviation about the mean, for any distribution, MUST be 0.
Graziella Pareto died in 1973.
Graziella Pareto was born in 1889.
Pareto Group was created in 1986.
The population of Pareto Group is 2,007.
The population of Pareto Group is 283.