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.
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
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")
Another way using the package
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")