Lexic.us

Definition of Pareto distribution

1. Noun. (statistics) A probability distribution such that for a random variable ''X'' with that distribution holds that the probability that ''X'' is greater than some number ''x'' is given by
$\backslash Pr(X>x)=\backslash left(\backslash frac\{x\}\{x\_\backslash mathrm\{m\}\}\backslash right)^\{-k\}$
for all ''x'' ? ''x''_m, where ''x''_m is the (necessarily positive) minimum possible value of ''X'', and ''k'' is a positive parameter. ¹

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