Monday, August 17, 2015

Evidence Of The Pareto Law At Work

The statistical distribution known as the Pareto Power Law is a probability distribution that manifests itself in many human economic and social phenomena, as well as many geophysical phenomena. It is characterized by a few large values and a long tail of many smaller values.

Some of the phenomena with evidence of being Pareto-like are:

* The size of cities and towns
* Income distribution in a capitalist economic system
* Returns on the stock market
* Sizes of sand particles
* Numbers of Species in a Genus of animals
* Internet traffic and demand on servers
* Earthquakes and other natural disasters.

Here I plot the number of page views on my blog by country. As you can see, it follows a Pareto distribution. 
This shape still exists despite the fact that I know for sure, Ukraine in 2nd place cannot be due to humans visiting my site, but Bots. And Israel looks suspicious too. The rest of the results are logical. US has the largest English Internet population. 3rd place is Singapore because it is my home country and word gets around among the visitors. China in 4th place is logical considering their Internet population-whether English or not is huge. Indonesia is because of an article I wrote about Bluebird taxis as case study of premium brand equity. 

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