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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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What is pareto superior?
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.
What is pareto superior and pareto non-comparable?
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.
In economics what is Pareto's Law?
Pareto's Law is the economic theory that 20% of the population earns 80% of the income.
What law propounds the theory independent economic operations despite human efforts?
Pareto's economic law of income distribution in society remains constant despite human efforts to change it.
Named after the Italian economist Vilfredo Pareto how might the Pareto Principle apply to your workplace?
20% of us do 80% of the work
