Questions tagged [pareto-distribution]

The Pareto distribution is a power distribution which was initially invented to describe the distribution of income but has found application in many other areas.

116 questions
Filter by
Sorted by
Tagged with
22 views

How can I calculate the exponent (parameter or tail index) of the Pareto distribution associated to the following paperclips experiment?

The experiment is the following: take a pool of paperclips for which in each round we follow these steps: 1) choose two paperclips randomly 2) if they are not linked with each other then link them ...
39 views

33 views

Processes that converge to the Pareto distribution

Do any stochastic processes generate the Pareto distribution as the steady-state statistic of the ensemble? For example, $$dS_t = f(t, S_t, W_t)$$ where in the Ito sense the p.d.f. of $g(S_t)$ ...
165 views

If $X\sim \operatorname{lognormal}$ then $Y:=(X-d\mid x\geq d)$ has approximately a Generalized Pareto distribution

Let $X$ be a random variable with lognormal distribution. Show that when sufficiently large then $Y:=(X-d\mid x\geq d)$ is approximately a random variable with generalized Pareto distribution. Hint: ...
12 views

Estimating tail share of apparently subexponential distributions drawn from finite population, given a finite sample

Suppose I have data on a large sample of some units of observation, where the observed quantity has meaningful differences and ratios. The sample is much smaller than the population, but both are ...
29 views

209 views

Finding Pareto distribution's Kurtosis

I have no clue how to solve this question: Questions: Given that each of a,b,c,d and e is a digit from {0,1,2,3,...,9} and f is an alphabet from {A,B,C,D,...,Z} X has a Pareto distribution with ...
67 views

What is a hooked powerlaw?

I happened to encounter lots of scientific/business scenarios where a Zipf/Pareto/powerlaw describes well my data. However, whenever the mean of the distribution is large enough, the fact that these ...
926 views

How to determine the type of probability distribution for a dataset?

I have aggregated(total) youtube videos views. I have take log of that views. And calculated autoregressive koefs that can be used for the video views predictibility tests. Let say I have aggregated ...
454 views

Checking for Pareto Distribution

I am trying to test the following statement: " Zipf's law is an observation about how often different words are used. Zipf's law predicts that in a body of text, the distribution of word frequencies ...
491 views

Fitting a distribution on Income data

Why is the Pareto Distribution a better fit to the upper tail of Income data, and the Lognormal distribution a better fit to the lower tail? What happens if we fit the data the other way around? My ...
376 views

Pareto Chart v.s. machine learning feature selection

A Pareto chart could be used to show which factors have the greatest impact and where attention is likely to yield the greatest benefit. Also common machine learning feature selection methods can ...