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To: Gluteus Maximus

I forget what little I ever knew about statistics but we’re probably talking about the normal distribution of human characteristics of any sort. There will always be those that stand out from others and the real stand outs will be a minority, 20% or less. I look back at growing up and the athletes that were in my classes. There was always a superstar or two in every class but from those at the top it trailed off to those who could only “throw like a girl.”

I read this article that applies the principle to more that just economics:
http://en.wikipedia.org/wiki/Pareto_principle

Now if only the media would pick up and expose the idea.


30 posted on 11/23/2012 6:30:57 PM PST by No One Special
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To: No One Special
Pareto's Law does apply to nearly every biological system. By the way, it's also true for any group within the group. So, for example, if you're looking at the top 20%, you'll find that 20% of them produce 80% of the top 20 percent's wealth. If you take the top five richest dudes in the world, you'd find a similar distribution, at least over time. I like to think of it like Russian matryoshka dolls.

It's like a gyroscope. You can push it one way or the other, but it will tend toward the 80/20 split.

Like I said, it relates to energy conservation in biological systems. There's a branch of economics called "econophysics" that developed from this insight.

But, it's not news by any stretch of the imagination. Guys like Krugman surely know that any system will move to the 80/20 split.

32 posted on 11/23/2012 6:41:26 PM PST by Gluteus Maximus
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