Pareto Distribution

The Pareto Distribution is a statistical concept that describes how a small number of items often account for a large portion of a total. This idea comes from the "80/20 rule," which suggests that roughly 80% of effects come from 20% of causes. For example, in business, a few key clients might generate most of the profits. The distribution is named after economist Vilfredo Pareto, who observed that in economics, wealth is often unevenly distributed, with a small percentage of the population holding a large percentage of the wealth. This pattern appears in various fields, including economics, social sciences, and natural phenomena.