# Pareto curve vs Pareto chart

I was searching online for some notes on how to draw a Pareto curve on income distribution. That's when I came across Pareto chart which is a bar diagram and is used in quality control. Are these the same and are both curves drawn using the same method? Kindly help.

• Otherwise, are you still looking on how to draw a Pareto curve? I may have an answer for this if required. – emeryville Feb 27 '16 at 5:06
• Thank you. Would you please tell me how to draw a Pareto curve? – Harry Feb 27 '16 at 20:21

The only relation I see is that they are both named after Vilfredo Pareto. The Pareto curve is related to efficiency, and I see no way of connecting the Pareto chart to the same concept. Since Pareto was an engineer before becoming an economist, it seems most likely to me that its just that two distinct techniques from two different fields were named after him. I suppose you could use a Pareto chart as a tool to make efficient engineering decisions, so they are minimally related.

You can use R to to draw a Pareto curve. Here is a useful vignette using the package VGAM.

require("VGAM")
x <- seq(0.1, 10, length = 1000)
plot(x, dpareto(x, scale = 1, shape=1), type = "l"
, xlab = "x", ylab = "dpareto(x)"
, main = "Pareto Probability Density")
lines(x, dpareto(x, scale = 1, shape=.5), col = "red")
lines(x, dpareto(x, scale = 1, shape= .2), col = "blue")


Gives the following plot Another way using the package Runuran

require(Runuran)
# Create distribution object for Pareto distribution:
distr <- udpareto(k=1,a=4)
# Generate generator object; use method PINV (inversion)
gen <- pinvd.new(distr)
# Draw a sample of size 100000
x <- ur(gen,100000)
# returns the density data
plot(density(x), xlim=c(0,5)
, xlab = "x", ylab = "dpareto(x)"
, main = "Pareto Probability Density")