3.3 Comparable to a Normal Distribution

Your statistics teacher neglected to teach you about the Pareto distribution (Figure 1), even though it is as valid as the normal “bell-shaped” curve. The distributions are similar since both require a large random sample of numbers, sequence the sample on the x axis, and plot amounts on the y axis. However, the normal distribution indicates significance, whereas the Pareto distribution predicts outputs.

Figure 1. The Pareto distribution.

Get Top Market Strategy now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.