Statistics for Maintenance Modelling: Continuous Lifetime Distributions 2

# The Pareto Distribution¤

The Pareto distribution originated in the modelling of incomes where a distribution that replicated the long right tail (that is there was no upper cut off for incomes) was needed. Its probability density function is given by:

f(t) = for > 0, > 0 and t .

The basic reciprocal power shape can be seen in these graphs of
f(t). Click on them for an interactive version in Excel where you can experiment with different values of and yourself.