If the random variable y denotes an individual’s income, pareto’s law claims that:________

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04-08-2022
Social Studies

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If the random variable y denotes an individual’s income, pareto’s law claims that:________

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AnnuG AnnuG · Answer 1 · 2022-08-13T13:21:41-04:00

If the random variable y denotes an individual’s income, Pareto’s law claims that P(Y>=y)= (k/y) raised to the power of 9. Here k refers to the minimum income of the entire population.

Pareto's law states that for different outcomes, almost eighty percent of the results come from the twenty percent of the causes of the event. We also call it the 80/20 rule or the rule of the vital few or even the principle of factor sparsity.

Joseph M. Juran, a management consultant developed this concept keeping in mind the context of quality control as well as improvement after he read the works of the Italian economist Vilfredo Pareto.

To learn more about Pareto's law, click

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