Pareto Distribution
Basic References: Clculo de probabilidades y Estadstica . H. Fernndez-Abascal et al. (Ed. Ariel, Barcelona (SPAIN), 1994). Distributions in Statistic
Houghton M. Co., 1992, 1994, 1997). Copyright 2001 J.L. Rojo
The Pareto distribution (Pareto, 1897) was proposed by this
professor as the 'universal' law for the income distribution
for a population. The parameter a governs the shape of the
distribution and x 0 is the smallest income (the minimum
a
value) The probability density equals f(x)= a x 0 / x
( a +1)
for
a
x>=x 0 , and the distribution function equals F(x)=1-(x 0 /x)
for x>=x 0 . The mode is at x 0 and the median results from
2.5
Prob. density
x0=
2
The parameters x 0 and a
a=
4
can be changed with x 0 >0,
E[X]=
2.667
a >0
Var(X)=
0.889
Std. Dev.=
0.943
Mode=
2.000
Med(X)=
2.378
Fisher g1=
7.071
Right Skewed
Fisher g2=
Error
------Quantiles
Distribution function
qr
r
x
F(x)
0.1
2.05
1
0.00000
0.25
2.15
2
0.00000
0.5
2.38
3
0.80247
0.75
2.83
4
0.93750
0.9
3.56
5
0.97440
(Enter other x -values or r -percentages)
1.5
0.5
0
0
the distribution function, Me X =x 0 2 1/ a . The quantiles are at
q r =x 0 /(1-p)
1/a
. The moments are easily obtained by taking
into account that a i =E[X i ]= a x 0 i /( a -i) for a >i . In
particular, E[X]= a x 0 /( a -1) (a >1 ), Var(X)= a x 0 /[( a 2
2)( a -1) 2 ] ( a >2 ) , m 3 = a 3 -3 a 2 a 1 +2 a 1 3 (a >3 ) and
m 4 = a 4 -4 a 3 a 1 +6 a 2 a 1 2 -3 a 1 4 (a >4 )
Probability for the range not covered by the figure (p[ X > 1
areto Distribution
et al. (Ed. Ariel, Barcelona (SPAIN), 1994). Distributions in Statistics . N.L. Johnson et al. (Vol. 1-4). (Ed. J. Wiley y
o., 1992, 1994, 1997). Copyright 2001 J.L. Rojo
Pareto Distribution
1.2
0.8
0.6
0.4
0.2
0
4
6
Prob. density
10
12
Distribution function
bility for the range not covered by the figure (p[ X > 10+x 0 ] )= 0.000772
14
Distribution function
a1=
a2=
a3=
a4=
m3=
m4=
g1=
g2=
2.66666667
8
32
#DIV/0!
5.92592593
#DIV/0!
7.07106781
#DIV/0!
2
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
6
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
7
0
2
1.56705233
1.24184265
0.99435347
0.80375514
0.65536
0.53865815
0.446027
0.37186886
0.31202543
0.26337449
0.22354837
0.19073486
0.16353483
0.14085926
0.12185399
0.1058443
0.09229355
0.08077221
0.07093441
0.0625
0.05524089
0.04897039
0.04353491
0.03880758
0.03468306
0.03107355
0.02790556
0.02511735
0.02265685
0.02048
0.01854937
0.01683307
0.01530385
0.01393834
0.01271647
0.0116209
0.01063667
0.00975079
0.008952
0.00823045
0.00757758
0.00698589
0.00644878
0.00596046
0.00551586
0.00511046
0.0047403
0.00440185
0.00409199
0.00380794
0
0
0.17729753
0.31698654
0.42824675
0.51774691
0.5904
0.6498722
0.69893177
0.7396918
0.77378157
0.80246914
0.82675001
0.84741211
0.86508376
0.88026963
0.89337776
0.90474013
0.91462847
0.9232664
0.93083895
0.9375
0.94337808
0.9485811
0.95319997
0.95731166
0.96098156
0.96426542
0.96721097
0.96985918
0.97224536
0.9744
0.97634956
0.97811701
0.9797224
0.98118324
0.98251486
0.98373074
0.98484274
0.98586135
0.9867958
0.98765432
0.98844418
0.98917188
0.98984318
0.99046326
0.99103673
0.99156774
0.99206
0.99251685
0.99294132
0.99333611
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
8
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
9
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
9.9
10
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
10.9
11
11.1
11.2
11.3
11.4
11.5
11.6
11.7
11.8
11.9
12
12.1
12.2
0.00354722
0.00330763
0.00308721
0.00288417
0.00269695
0.00252413
0.00236443
0.0022167
0.00207991
0.00195313
0.0018355
0.00172628
0.00162476
0.00153032
0.0014424
0.00136047
0.00128406
0.00121274
0.00114612
0.00108385
0.00102559
0.00097105
0.00091995
0.00087205
0.00082711
0.00078492
0.00074528
0.00070803
0.00067298
0.00064
0.00060894
0.00057967
0.00055207
0.00052603
0.00050146
0.00047825
0.00045631
0.00043557
0.00041596
0.00039739
0.00037981
0.00036315
0.00034737
0.0003324
0.00031819
0.00030471
0.00029191
0.00027975
0.00026819
0.0002572
0.00024675
0.0002368
0.99370368
0.99404626
0.99436585
0.99466428
0.99494321
0.99520415
0.99544847
0.99567743
0.99589218
0.99609375
0.99628311
0.99646113
0.99662862
0.99678632
0.9969349
0.997075
0.99720718
0.99733198
0.99744988
0.99756135
0.99766679
0.99776659
0.99786111
0.99795069
0.99803562
0.9981162
0.99819269
0.99826533
0.99833437
0.9984
0.99846243
0.99852185
0.99857842
0.99863231
0.99868368
0.99873265
0.99877937
0.99882395
0.99886652
0.99890718
0.99894603
0.99898317
0.99901869
0.99905267
0.99908519
0.99911633
0.99914616
0.99917474
0.99920213
0.9992284
0.99925359
0.99927776
12.3
12.4
12.5
12.6
12.7
12.8
12.9
13
13.1
13.2
13.3
13.4
13.5
13.6
13.7
13.8
13.9
14
14.1
14.2
14.3
14.4
14.5
14.6
14.7
14.8
14.9
15
15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
15.9
16
16.1
16.2
16.3
16.4
16.5
16.6
16.7
16.8
16.9
17
17.1
17.2
17.3
17.4
0.00022733
0.00021831
0.00020972
0.00020152
0.00019371
0.00018626
0.00017916
0.00017237
0.00016589
0.0001597
0.00015379
0.00014813
0.00014273
0.00013756
0.00013261
0.00012787
0.00012334
0.000119
0.00011484
0.00011085
0.00010703
0.00010336
9.9848E-05
9.6475E-05
9.3238E-05
9.013E-05
8.7146E-05
8.428E-05
8.1526E-05
7.8879E-05
7.6335E-05
7.3888E-05
7.1535E-05
6.9272E-05
6.7094E-05
6.4997E-05
6.2979E-05
6.1035E-05
5.9163E-05
5.7359E-05
5.5621E-05
5.3946E-05
5.2331E-05
5.0774E-05
4.9272E-05
4.7823E-05
4.6424E-05
4.5075E-05
4.3772E-05
4.2515E-05
4.13E-05
4.0127E-05
0.99930096
0.99932324
0.99934464
0.9993652
0.99938496
0.99940395
0.99942222
0.9994398
0.99945671
0.99947298
0.99948866
0.99950375
0.99951829
0.9995323
0.99954581
0.99955883
0.99957139
0.99958351
0.9995952
0.99960648
0.99961737
0.99962789
0.99963805
0.99964787
0.99965735
0.99966652
0.99967538
0.99968395
0.99969224
0.99970026
0.99970802
0.99971553
0.9997228
0.99972984
0.99973666
0.99974326
0.99974966
0.99975586
0.99976187
0.99976769
0.99977334
0.99977882
0.99978413
0.99978929
0.99979429
0.99979914
0.99980386
0.99980843
0.99981287
0.99981719
0.99982138
0.99982545
17.5
17.6
17.7
17.8
17.9
18
18.1
18.2
18.3
18.4
18.5
18.6
18.7
18.8
18.9
19
19.1
19.2
19.3
19.4
19.5
19.6
19.7
19.8
19.9
20
20.1
20.2
20.3
20.4
20.5
20.6
20.7
20.8
20.9
21
21.1
21.2
21.3
21.4
21.5
21.6
21.7
21.8
21.9
22
3.8993E-05
3.7898E-05
3.6839E-05
3.5816E-05
3.4827E-05
3.387E-05
3.2945E-05
3.205E-05
3.1183E-05
3.0345E-05
2.9534E-05
2.8749E-05
2.7988E-05
2.7252E-05
2.6538E-05
2.5847E-05
2.5178E-05
2.4529E-05
2.39E-05
2.329E-05
2.2699E-05
2.2126E-05
2.157E-05
2.1031E-05
2.0508E-05
2E-05
1.9507E-05
1.9029E-05
1.8565E-05
1.8115E-05
1.7677E-05
1.7252E-05
1.6839E-05
1.6439E-05
1.6049E-05
1.5671E-05
1.5303E-05
1.4945E-05
1.4598E-05
1.426E-05
1.3931E-05
1.3612E-05
1.3301E-05
1.2999E-05
1.2705E-05
1.2418E-05
0.9998294
0.99983325
0.99983699
0.99984062
0.99984415
0.99984758
0.99985092
0.99985417
0.99985734
0.99986041
0.99986341
0.99986632
0.99986916
0.99987192
0.99987461
0.99987723
0.99987978
0.99988226
0.99988468
0.99988704
0.99988934
0.99989158
0.99989377
0.9998959
0.99989797
0.9999
0.99990198
0.9999039
0.99990578
0.99990762
0.9999094
0.99991115
0.99991286
0.99991452
0.99991614
0.99991773
0.99991928
0.99992079
0.99992227
0.99992371
0.99992512
0.9999265
0.99992784
0.99992916
0.99993044
0.9999317
