What type of distribution did Pareto discover in income?
Normal distribution
Pareto distribution
Binomial distribution
Uniform distribution
Answer
The Pareto distribution, discovered by Vilfredo Pareto, describes the distribution of income in a population. It is a power law distribution, meaning that the probability of an individual having an income greater than a given amount is inversely proportional to a power of that amount.
Mastering Pareto: Exploring the Legacy of Vilfredo Pareto in Sociology and Economics