1. Rigorous Derivation of Pareto Principle from the Central Limit Theorem.
- Author
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Kashin, I. V.
- Subjects
- *
PARETO principle , *PARETO distribution , *CENTRAL limit theorem , *CORPORATE finance , *STATISTICS - Abstract
In this paper we investigate the problem of rigorous expression for Pareto principle if applied to standard distributions, which could be emanated from The Central Limit Theorem. Necessity of this consideration is generally conditioned by extensive employment of statistical methods to optimized classification tasks and minimal utility models construction. The equation for 80/20-like ratio calculation was derived in the universal form (independent from all parameters of the distribution) due to effective determination of the kurtosis. We established the exact ratio as 76/24, which one can find useful for applied statistical analysis of physical and financial systems. [ABSTRACT FROM AUTHOR]
- Published
- 2019
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