Pareto2(q,b) - no Crystal Ball distribution = Pareto(a, q) – a, where a = b, and q = q
Pareto equations (second kind)
This distribution is simply a standard Pareto distribution but shifted along the x-axis so that it starts at x = 0. This is most readily apparent by studying the cumulative distribution functions for the two distributions:
Pareto: | F(x)=1-\Big(\frac{a}{x}\Big)^{\theta} |
Pareto2: | F(x)=1-\Big(\frac{b}{x+b}\Big)^{q} |
The only difference between the two equations is that x for the Pareto has been replaced by (x+b) for the Pareto2. In other words, using the notation above:
Pareto2(b,q) = Pareto(q,a) – a
where a = b, and q = q
Thus both distributions have the same variance and shape when a = b and q = q, but different means.
Uses
See the Pareto distribution
