User:IssaRice/Pareto distribution

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Revision as of 20:13, 5 February 2020 by IssaRice (talk | contribs)


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 cxf(x)dxxmxf(x)dx=0.80 where we choose the cutoff c according to cf(x)dx=0.20.