Pareto's 80/20 Rule and the Gaussian Distribution

TL;DR

This paper reveals that the empirical Pareto 80/20 rule aligns with a Gaussian distribution characterized by a standard deviation twice its mean, indicating significant societal and natural variations and implying the presence of negative contributors.

Contribution

It establishes a novel statistical connection between Pareto's 80/20 rule and the Gaussian distribution, highlighting large variations and implicit negative factors.

Findings

Pareto's 80/20 rule corresponds to a Gaussian distribution with specific parameters.

The distribution exhibits large characteristic variations in society and nature.

Implication of implicit negative contributors in the distribution.

Abstract

The statistical state for the empirical Pareto's 80/20 rule has been found to correspond to a normal or Gaussian distribution with a standard deviation that is twice the mean. This finding represents large characteristic variations in our society and nature. In this distribution, the rule can be also referred to as, for example, the 25/5, 45/10, 60/15, or 90/25 rule. In addition, our result suggests the existence of implicit negative contributors.