October 2017
Intermediate to advanced
624 pages
17h 24m
English
There are four types of Pareto distribution. Originally developed for exploring the distribution of wealth, they lead to Pareto analysis and to the Pareto principle, or ‘80/20 rule’, familiar to many engineers.
The Pareto‐I distribution is described by the PDF
The shape parameter δ is sometimes described as the tail index; β is the minimum nonzero value that x can have. Figure 23.1 shows the effect of changing these parameters.
Figure 23.1 Pareto‐I: Effect of β and δ on shape
The CDF is

The QF is
The moments are given by
From this can be derived


One application is to assess the ...