August 2011
Intermediate to advanced
113 pages
2h 55m
English
Content preview from Top Market Strategy
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3.3 Comparable to a Normal Distribution
Your statistics teacher neglected to teach you about the Pareto distribution (Figure 1), even though it is as valid as the normal “bell-shaped” curve. The distributions are similar since both require a large random sample of numbers, sequence the sample on the x axis, and plot amounts on the y axis. However, the normal distribution indicates significance, whereas the Pareto distribution predicts outputs.
Figure 1. The Pareto distribution.
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