- Pareto Distribution

The probability density function (pdf) of a Pareto distribution with parameters σ and λ is given by

f(x|σ, λ) = λσ λ

xλ+1 , x ≥ σ > 0, λ > 0. (24.1)

The cumulative distribution function (cdf) is given by

F (x|σ, λ) = P (X ≤ x|σ, λ) = 1− (σ x

)λ , x ≥ σ.