User:Tangzhichu/sandbox

The Pareto distribution, named after the Italian civil engineer, economist, and sociologist Vilfredo Pareto, is a power-law probability distribution that is used in description of social, scientific, geophysical, actuarial, and many other types of observable phenomena. Originally applied to describing the distribution of wealth in a society, fitting the trend that a large portion of wealth is held by a small fraction of the population, the Pareto distribution has colloquially become known and referred to as the Pareto principle, or "80-20 rule", and is sometimes called the "Matthew principle". This rule states that, for example, 80% of the wealth of a society is held by 20% of its population. However, one should not conflate the Pareto distribution with the Pareto Principle as the former only produces this result for a particular power value, (α = log₄5 ≈ 1.16). While is variable, empirical observation has found the 80-20 distribution to fit a wide range of cases, including natural phenomena and human activities.^{[citation needed]}