Pareto interpolation is a method of estimating the median of a population that follows a Pareto distribution. It is used in economics when analysing income figures. It assumes that the data fits a curve known as the Pareto distribution. Image File history File links Stop_hand. ... Ongoing events • Abramoff-Reed gambling scandal • Al Jazeera bombing memo • Avian influenza (H5N1) outbreak • Black sites scandal • Conservative leadership race (UK) • Fuel prices • Irans nuclear program • Jilin chemical plant explosions • Kashmir earthquake • Malawi food crisis • Malaysian prisoner abuse scandal • New Delhi bombings investigation • Niger food crisis • North Indian cyclone... In statistics, an estimator is a function of the known data that is used to estimate an unknown parameter; an estimate is the result from the actual application of the function to a particular set of data. ... In probability theory and statistics, the median is a number that separates the higher half of a sample, a population, or a probability distribution from the lower half. ... The Pareto distribution, named after the Italian economist Vilfredo Pareto, is a power law probability distribution found in a large number of real-world situations. ... Buyers bargain for good prices while sellers put forth their best front in Chichicastenango Market, Guatemala. ... The Pareto distribution, named after the Italian economist Vilfredo Pareto, is a power law probability distribution found in a large number of real-world situations. ...
The median is given by
where parameters κ and θ are given by:
and
where
a = lower limit of the category containing the median
b = upper limit of the category containing the median
Pa = proportion of the distribution that lies below the lower limit
Pb = proportion of the distribution that lies below the upper limit
Paretointerpolation is a method of estimating the median and other properties of a population that follows a Pareto distribution.
It is used in economics when analysing the distribution of incomes in a population, when one must base estimates on a relatively small random sample taken from the population.
Paretointerpolation can be used when the available information includes the proportion of the sample that falls below each of two specified numbers a < b.
The Pareto distribution named after the Italian economist Vilfredo Pareto is a power law distribution found in a large number of real-world situations.
If X is a random variable with a Pareto distribution, then the probability distribution of X is characterized by the statement
If the value of k is chosen judiciously then the Pareto distribution obeys the "80-20 rule".
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