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Is there a point where preto distribution really takes over?

1 Answer

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Answer:

Yes Preto distribution takes over when we apply 80/20 rule.

Step-by-step explanation:

The Pareto distribution is derived from pareto principle which is based on 80/20 rule. This is main idea behind the Pareto distribution that percent of wealth is owned by 20% of population. This 80/20 rule is gaining significance in business world. There it becomes easy to understand the input and output ratio. The input ratio helps to analyse the potential output using Pareto distribution.

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