Statistics - Pareto Principle

1 - About

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.

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);
  };
}

4 - Documentation / Reference

data_mining/pareto.txt · Last modified: 2017/11/19 20:03 by gerardnico