Math

The 80-20 Rule Explained (Pareto Principle)

The 80/20 rule or Pareto principle comes up a lot in economics and business. But why does this pattern emerge? I show why using a paper clip experiment.

Note: VSauce later made a video about Zipf’s law that uses this same experiment but does the math incorrectly. The long tail should be for the single chain of long length.

Income distribution graph by vikjam (CC BY-SA 3.0)
http://en.wikipedia.org/wiki/File:Distribution_of_Annual_Household_Income_in_the_United_States_2012.png#filelinks

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My Books

“The Joy of Game Theory” shows how you can use math to out-think your competition. (rated 4/5 stars on 23 reviews) https://www.amazon.com/gp/product/1500497444

“The Irrationality Illusion: How To Make Smart Decisions And Overcome Bias” is a handbook that explains the many ways we are biased about decision-making and offers techniques to make smart decisions. (rated 5/5 stars on 1 review) https://www.amazon.com/gp/product/1523231467/

“Math Puzzles Volume 1” features classic brain teasers and riddles with complete solutions for problems in counting, geometry, probability, and game theory. Volume 1 is rated 4.5/5 stars on 11 reviews. https://www.amazon.com/gp/product/1517421624/

“Math Puzzles Volume 2” is a sequel book with more great problems. https://www.amazon.com/gp/product/1517531624/

“Math Puzzles Volume 3” is the third in the series. https://www.amazon.com/gp/product/1517596351/

“40 Paradoxes in Logic, Probability, and Game Theory” contains thought-provoking and counter-intuitive results. (rated 4.9/5 stars on 7 reviews) https://www.amazon.com/gp/product/1517319307/

“The Best Mental Math Tricks” teaches how you can look like a math genius by solving problems in your head (rated 4.7/5 stars on 3 reviews) https://www.amazon.com/gp/product/150779651X/

“Multiply Numbers By Drawing Lines” This book is a reference guide for my video that has over 1 million views on a geometric method to multiply numbers. (rated 5/5 stars on 1 review) https://www.amazon.com/gp/product/1500866148/

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