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Questions tagged [pareto]

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1answer
47 views

Discrete Pareto Distribution vs Zipf Distribution and Power Law vs Zipf Law

I need to get a simple, but clear idea of Discrete Pareto Distribution vs Zipf Distribution and Power Law vs Zipf Law. (Are they similar/ how they relate to each other.) Wikipedia definitions do not ...
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11 views

Would this be a correct way to sample from intuitively correlated variables?

I have three variables and each represent some metric of people and can have values within different ranges e.g. ...
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0answers
151 views

Pareto/NBD and New/Existing Customers

I am looking at implementing a Pareto/NBD model to forecast customer lifetime value in a non-contractual business setting. One thing I haven't got my head around yet is whether such a model is equally ...
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How to write the set of indexes of Pareto optimal reward set in formal methods

I denote that a reward vector of an item $a$ as $r_a$. Say there is a set of items denoted as $A_t$. I want to get a set $A^\prime_t$ of items from $A_t$ that has non-dominated reward vectors. For a ...
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1answer
623 views

How to compute MLE for Pareto distribution data with right censored observation by using R programming?

I am doing survival analysis and writing codes to compute MLE for several distributions. Yet, I get stuck while writing for Pareto distribution with right censored observation. For complete/...
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0answers
54 views

Is this a known distribution?

For work, I plotted a set of shops by how many times they did business in the past week. The plot I got out looked something like this: This looked obviously like a Pareto distribution. After all, ...
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1answer
5k views

Is it possible to understand pareto/nbd model conceptually?

I am learning to use BTYD package that uses Pareto/NBD model to predict when will be a customer is expected to be back. However, all literature on this model is full of mathematics and there does not ...
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0answers
218 views

Pareto Chart - when can be used?

I have a question on the Pareto Chart. I know it has been originally used in quality control, but do you think it is good to apply it to other domains as well? I have recently built a Pareto Chart ...
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1answer
1k views

Can the values Of MLEs be negative? [closed]

I am working on the Pareto model. After applying Reduced log likelihood for ECM algorithm , the MLE values of one of the parameters is negative. Can this be accepted?
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0answers
524 views

Estimation of regression model with error terms having a Pareto distribution

I am trying to estimate the regression model, say standard linear model, with the error term having a Pareto distribution instead of normal. Although it is fairly straightforward to construct the ...
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30 views

Subset of Pareto/powerlaw distribution

Given a set of random data generated using pareto-distribution, how can I get X% of this random data without losing pareto-distribution. In other words, how to select a subset of pareto-distribution ...
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1answer
99 views

Existence of the conditional tail mean

Does the existence of the first moment of a generalized Pareto distribution with support $[0,\infty)$ imply the existence (finiteness) of the conditional tail mean -- i.e. what in risk management is ...
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0answers
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How to extract 20-80 relations from data (Pareto principle)?

There are certain input-output processes that display a "20-80 relation". That is, given Y depending on X, there are subsets of X consisting 20% of the input set that generate 80% of the output. For ...
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263 views

How to estimate Pareto shape parameter with bayesian estimation?

I want to estimate the shape (alpha) parameter for a Pareto distribution. (We assume that we know the scale parameter =1 ). The prior is alpha = 2 (and maybe we have always to assume a distribution ? ...
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0answers
36 views

Is there a distribution that covers Pareto's law?

Is there a distribution where (for example) 80% of the results come from 20% of the inputs? (i.e. Pareto's law). Hmm... there's a tag for Pareto Distribution ... is that the answer?
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0answers
292 views

Autocorrelated Inter-arrival Times of Extreme Events

I'm using a bunch of techniques and methods from Extreme Value Theory to analyze my data. I have a time series representing the number of events happening in a given day. The time series is unequally ...
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1answer
162 views

Find the MLE of the proportion of employees falling in $[I_1,I_2]$

Suppose the incomes of the employees in a firm follow a Pareto distribution as follows:$$f(x)=\dfrac{cA^c}{x^{c+1}}$$ where $x\geq A>0$. Suppose you take a random sample of the incomes $(X_1,...