Pareto distribution
The Pareto distribution is a statistical distribution that describes phenomena where a small number of items account for a large portion of a total. It is often represented by the "80/20 rule," which suggests that roughly 80% of effects come from 20% of causes. This distribution is commonly observed in economics, where a small percentage of the population holds a majority of wealth.
In a Pareto distribution, the probability of an event decreases as the value increases, meaning that larger values are less likely to occur. This distribution is useful in various fields, including finance, sociology, and resource management, to analyze and predict the behavior of systems with unequal distributions.