Pareto distribution [SEP] named after
Pareto distribution
/math
The Pareto distribution, named after the Italian civil engineer, economist, and sociologist Vilfredo Pareto, is a power-law probability distribution that is used in description of social, scientific, geophysical, actuarial, and many other types of observable phenomena. Originally applied to describing the distribution of wealth in a society, fitting the trend that a large portion of wealth is held by a small fraction of the population, the Pareto distribution has colloquially become known and referred to as the Pareto principle, or "
Lomax distribution
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The Lomax distribution, conditionally also called the Pareto Type II distribution, is a heavy-tail probability distribution used in business, economics, actuarial science, queueing theory and Internet traffic modeling. It is named after K. S. Lomax. It is essentially a Pareto distribution that has been shifted so that its support begins at zero.
Characterization.
Characterization Probability density function.
The probability density function (pdf) for the Lomax distribution is given by
with shape parameter formula_9 and scale parameter