User:IssaRice/Pareto distribution: Difference between revisions
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I still don't know how this is derived, but here's how to make sense of the 80/20 rule: | I still don't know how this is derived, but here's how to make sense of the 80/20 rule: | ||
What does it mean to say that the top 20% own 80% of the wealth? It means that <math>\frac{\int_c^\infty xf(x)\, dx}{\int_{x_m}^\infty xf(x)\, dx} = 0.80</math> where we choose the cutoff c according to <math>\int_c\infty f(x)\, dx = 0.20</math>. | What does it mean to say that the top 20% own 80% of the wealth? It means that <math>\frac{\int_c^\infty xf(x)\, dx}{\int_{x_m}^\infty xf(x)\, dx} = 0.80</math> where we choose the cutoff c according to <math>\int_c^\infty f(x)\, dx = 0.20</math>. | ||
Revision as of 20:13, 5 February 2020
I still don't know how this is derived, but here's how to make sense of the 80/20 rule:
What does it mean to say that the top 20% own 80% of the wealth? It means that where we choose the cutoff c according to .
