# 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.

## 3 - 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);
};
}