The commonly used Weibull distribution for spectrum events and the Pareto distribution
for extreme/rare events are described below for events that can be described using a continuous probabilistic distribution function.
The simple theory of optimal taxation that Diamond and Saez provide relies on the assumption that income among the top 1 percent is distributed according to the Pareto distribution
Goodness-of-fit for the generalized Pareto distribution
For the Pareto distribution
, simple computations lead to
However, the life of the product often obeys the non-normal distribution, and even such distributions as exponential distribution, Pareto distribution
and Weibull distribution.
Additionally, the distribution of straight-line step lengths was not well approximated by a Pareto distribution
(and an exponential distribution used for comparison proved to be a slightly better fit) (Fig.
Denote the Bounded Pareto distribution
by BP(k,P,[alpha]) where k and P are the minimum and the maximum job sizes and [alpha] is the exponent of the power law.
The inverse power law scaling is known as the Pareto distribution
p(x) ~ [x.
The defects can be solved by generalized Pareto distribution
(GPD) ("as discussed by Ashkar and El Adlouni ").
The earliest model of measuring income distribution and measurement of income inequality has been introduced through one parameter Pareto distribution
by Vilfredo Pareto .
The Pareto distribution
is often used as a model for claim amounts needed to obtain well-fitted tails .
Here we demonstrate the computations first for the continuous Pareto distribution
, and then for a discrete distribution - both used later to analyze disparity of value in a real-world database.