34. Pareto Distribution

  1. Catherine Forbes1,
  2. Merran Evans1,
  3. Nicholas Hastings2 and
  4. Brian Peacock3

Published Online: 16 DEC 2010

DOI: 10.1002/9780470627242.ch34

Statistical Distributions, Fourth Edition

Statistical Distributions, Fourth Edition

How to Cite

Forbes, C., Evans, M., Hastings, N. and Peacock, B. (2010) Pareto Distribution, in Statistical Distributions, Fourth Edition, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9780470627242.ch34

Author Information

  1. 1

    Monash University, Victoria, Australia

  2. 2

    Albany Interactive, Victoria, Australia

  3. 3

    Brian Peacock Ergonomics, SIM University, Singapore

Publication History

  1. Published Online: 16 DEC 2010
  2. Published Print: 29 NOV 2010

ISBN Information

Print ISBN: 9780470390634

Online ISBN: 9780470627242



  • parameter estimation;
  • Pareto distribution;
  • probability density function;
  • random number;
  • variate


The Pareto distribution is often described as the basis of the 80/20 rule. For example, 80% of customer complaints regarding a make of vehicle typically arise from 20% of components. Other applications include the distribution of income and the classification of stock in a warehouse on the basis of frequency of movement. This chapter illustrates probability density function and distribution function for the Pareto variate. It discusses variate relationships, parameter estimation and random number generation for the Pareto distribution.

Controlled Vocabulary Terms

control variate; Pareto distribution; probability density function