Pareto

Continuous distribution for modeling inequality.

Parameters

Location: Minimum value of the distribution.

Shape: Shape of the distribution.

Applications

Applied in modeling customer or revenue concentration, where a few items drive most of the total, and the risk of very large losses or claims.

To apply Monte Carlo simulations to the inputs/outputs of your model, see the Scenarios - Monte Carlo module.

Pareto

Outputs

Plot: Histogram of the distribution with selected Confidence Interval.

Data: Confidence Intervals, Summary Statistics and Percentiles. See a sample Monte Carlo output.

View demo for Normal distribution

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