Pareto Distributions in Business Modeling
Vyacheslav Mazur (Cross/Z Intl. vmazur@crossz.com)
Alex Genkin (IITP, Rus. Acad. Sci. genkin@glasnet.ru)
Some variables in the business data sets, especially the variables of
econometric nature, belong to Pareto distribution law and its close
relatives. These variables are very inconvenient to process using
conventional statistics technique; some of them have infinite
variance. The report describes how to recognize these variables and
how to use them in modeling in the fully automated manner. Approach is
implemented in the QO Voyager (TM) by Cross/Z, Intl.