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Pareto's 80/20 Rule and the Gaussian Distribution

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  • Katsuaki Tanabe

Abstract

The statistical state for the empirical Pareto's 80/20 rule has been found to correspond to a normal or Gaussian distribution with a standard deviation that is twice the mean. This finding represents large characteristic variations in our society and nature. In this distribution, the rule can be also referred to as, for example, the 25/5, 45/10, 60/15, or 90/25 rule. In addition, our result suggests the existence of implicit negative contributors.

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  • Katsuaki Tanabe, 2020. "Pareto's 80/20 Rule and the Gaussian Distribution," Papers 2009.14378, arXiv.org.
    • Handle: RePEc:arx:papers:2009.14378
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